Central bank liquidity swaps are negligible now, though it was high as high as ~ $ 600B.
Second, you see the crisis responses: 1) the loan programs in the US, which explode and trail away and 2)
the Central Bank Liquidity Swaps, which explode, trail away, and have come back in what is presently a muted form today.
Not exact matches
A: No, I think that when interest rates are constrained by the zero bound, it is appropriate for
central banks to look, if conditions warrant, for other ways to be expansionary and
swapping short term assets for long term assets or what is the equivalent of a
liquidity trap, printing money and buying long term assets, can be a reasonable solution.
In response, the Fed reduced the federal funds rate to essentially zero by mid-December, instituted
swap lines to provide dollar
liquidity to foreign
central banks, added new
liquidity facilities to target specific sectors of the shadow
banking system and began to expand its balance sheet through asset purchases.
-- For now, the press is reporting that
central banks are mulling dollar supply via bilateral
swap lines in the case of a
liquidity squeeze upon a «no» vote.