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Licensed Unlicensed Requires Authentication Published by De Gruyter March 25, 2005

A Note on the ECB's Monetary Policy when Confronted with International Systemic Risks

Alyson Bloomer and Thierry Warin
From the journal Global Economy Journal

This paper provides an analysis of the liquidity management of the euro. We tested the influence of five variables (the exchange rate, the price of oil, the EU deficit, the EU interest rate, and the U.S. interest rate) on the euro liquidity supply in addition to the fluctuation of the liquidity supply before and after September 11, 2001. While the literature focuses on the internal European institutional environment, this study looks at the international systemic risks and their influence on the liquidity supply. Ultimately, we come to the conclusion that the ECB’s liquidity supply is affected by international factors.

Published Online: 2005-3-25

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