This essay surveys the new monetarist approach to liquidity. Work in this literature strives for
empirical and policy relevance, plus rigorous foundations. Questions include: What is …

The new edition of a comprehensive treatment of monetary economics, including the first
extensive coverage of the effective lower bound on nominal interest rates. This textbook …

Since 2007, central banks of industrialized countries have counteracted financial instability,
recession, and deflationary risks with unprecedented monetary policy operations. While …

The purpose of this paper is to discuss some of the models used in New Monetarist
Economics, which is our label for a body of recent work on money, banking, payments …

Two experts in monetary policy offer a unified framework for studying the role of money and
liquid assets in the economy. In Money, Payments, and Liquidity, Ed Nosal and Guillaume …

Extreme disruptions in the interbank market severely hampered the broader financial system
during the 2007–08 financial crisis. We use Fedwire data to estimate fed funds trades and …

To combat the financial crisis that intensified in the fall of 2008, the Federal Reserve injected
a substantial amount of liquidity into the banking system. The resulting increase in reserve …

In an open market operation, the central bank swaps currency for bonds. We show how
injecting money in this way is different from transfers, the way policy is usually formulated …

We introduce a dynamic network model of interbank lending and estimate the parameters by
indirect inference using network statistics of the Dutch interbank market from February 2008 …

This paper uses a New Keynesian model with banks and deposits to study the
macroeconomic effects of policies that pay interest on reserves. Although their effects on …