Sentences with phrase «central bank liquidity does»

Again, when risk - aversion kicks in during the completion of a market cycle, central bank liquidity does not reliably support stocks, because safe liquidity is seen as a desirable asset rather than an inferior one.

Not exact matches

It does this in several ways, including through its central position in the financial system and its role in managing and providing liquidity to the system, and through its chairmanship of the Council of Financial Regulators, comprising the Reserve Bank, APRA, the Australian Securities and Investments Commission and Treasury.

Instead of doing what a central bank is supposed to do — provide liquidity (and paper currency) to banks, ECB head Mario «Whatever it takes» Draghi forced them to shut down even their ATM machines for lack of cash.

His former colleague and incoming Federal Reserve Chair Powell also expressed a similar view, calling Fed's balance sheet expansion tantamount to «short volatility position,» and private capital displaced by Fed's outsized presence would «find something else to do,» such as adding duration, credit and liquidity risk with implicit understanding that the central bank «will be there to prevent serious losses:»

We do not fight markets and therefore have not been sellers of equity markets by battling the power of central bank liquidity creation.

Risks to our baseline: banks do not need more central bank liquidity at the moment and even if they did, the ECB's refinancing operations continue to be conducted through fixed rate, full allotment procedures until at least end - 2017.

The agency said it did not believe the central bank hiking its late - liquidity window rate last week would be sufficient to bring down inflation to the state - lender's 5 percent target or reduce the volatility in Turkey's real effective exchange rate.

«The message to families and to businesses is that, as our central banks are already doing, liquidity will be assured in order to preserve confidence and stability,» he told reporters after the mini-summit.

Eliminate Keynesian idiocy, and manage the economy sensibly, balancing the budget as a normal matter, and don't use government or central bank policy to moderate it, because that only creates liquidity traps like the one we are in.