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Author:
William Arrata https://isni.org/isni/0000000404811396 International Monetary Fund

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Benoit Nguyen https://isni.org/isni/0000000404811396 International Monetary Fund

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Imene Rahmouni-Rousseau https://isni.org/isni/0000000404811396 International Monetary Fund

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Miklos Vari https://isni.org/isni/0000000404811396 International Monetary Fund

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Monetary and Capital Markets Department

The Scarcity Effect of Quantitative Easing on Repo Rates: Evidence from the Euro Area 1

Prepared by William Arrata2, Benoit Nguyen3, Imène Rahmouni-Rousseau4 and Miklos Vari5

Authorized for distribution by Gaston Gelos

December 2018

Contents

  • 1 Introduction

  • 2 The repo market and central bank asset purchases: an interplay of different possible mechanisms

  • 3 Data

  • 4 Empirical strategy

  • 5 Results

  • 6 Implications for monetary policy

  • 7 Conclusion

  • Collapse
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The Scarcity Effect of Quantitative Easing on Repo Rates: Evidence from the Euro Area
Author:
William Arrata
,
Benoit Nguyen
,
Imene Rahmouni-Rousseau
, and
Miklos Vari