Bidding behaviour in the ECB’s main refinancing operations during the financial crisis

Liquidity provision through its repo auctions has been one of the main instruments of the European Central Bank (ECB) to address the recent tensions in financial markets since summer 2007. In this paper, we analyse banks’ bidding behaviour in the ECB’s main refinancing operations (MROs) during the ongoing turmoil in money and financial markets. We employ a unique data set comprising repo auctions from March 2004 to October 2008 with bidding data from 877 counterparties. We find that increased bid rates during the turmoil can be explained by, inter alia, the increased individual refinancing motive, the increased attractiveness of the ECB’s tender operations due to its collateral framework and banks’ bidding more aggressively, i.e. at higher rates to avoid being rationed at the marginal rate in times of increased liquidity uncertainty. JEL Classification: E52, D44, C33, C34Bidding Behavior, Central Bank Auctions, Financial Market Turmoil, monetary policy instruments, Panel Sample Selection Model

The Implementation of Monetary Policy in New Zealand: What Factors Affect the 90-Day Bank Bill Rate?

This paper discusses the implementation of monetary policy in New Zealand and its flow-on effects on the 90-day bank bill rate over the 1999-2005 period. The effects of external factors are considered as well. Our findings indicate that the maturity spectrum ratio exerted a positive effect on the 90-day rate while the allotment ratio did not. This interest rate had a tendency to revert to the level set by its Australian counterpart. No such link exists between the NZ 90-day rate and the US 90-day rate. Neither the maturity spectrum nor the allotment ratio contributed to the volatility of the New Zealand 90-day rate.90-Day Bank Bill Rate; Open-Market Operations; Allotment Ratio; Maturity Spectrum Ratio; Foreign Interest Rate Linkage

Interaction of powers in the Philippine presidential system

The executive - legislative relations in the Philippines have been described in two contrasting stories, namely the "strong president" story, and the "strong congress" story. This paper tries to consolidate the existing arguments and propose a new perspective focusing on the "compromise exchange" between the president and the congress across the different policy areas. It considers that the policy outcome is not brought by unilateral power of the president or the congress, but formed as the product of such an exchange. Interaction of powers and their complementary function are addressed. Furthermore, aside from the constitutional power, the weak party discipline is pointed out as a key factor in making the exchange possible.Internal politics, Executive-legislative relations, Presidency, Policy process, Democracy, Philippines

Secure Implementation in Shapley-Scarf Housing Markets

This paper considers the object allocation problem introduced by Shapley and Scarf (1974). We study secure implementation (Saijo, Sjostrom, and Yamato, 2007), that is, double implementation in dominant strategy and Nash equilibria. We prove that (i) an individually rational solution is securely implementable if and only if it is the no-trade solution, (ii) a neutral solution is securely implementable if and only if it is a serial dictatorship, and (iii) an efficient solution is securely implementable if and only if it is a sequential dictatorship. Furthermore, we provide a complete characterization of securely implementable solutions in the two-agent case.

Over- and underbidding in central bank open market operations conducted as fixed rate tender

Open market operations play a key role in allocating central bank funds to the banking system and thereby to steer short-term interest rates in line with the stance of monetary policy. Many central banks apply so-called “fixed rate tender” auctions in their open market operations. This note presents, on the basis of a survey of central bank experience, a model of bidding in such tenders. In their conduct of fixed rate tenders, many central banks faced specifically an “under”- and an “overbidding” problem. These phenomena are revisited in the light of the proposed model and the more general question of the optimal tender procedure and allotment policy of central banks is addressed. --open market operations,tender procedures,central bank liquidity management

CREATION OF LAND MARKETS IN TRANSITION COUNTRIES: IMPLICATIONS FOR THE INSTITUTIONS OF LAND ADMINISTRATION

This paper describes (1) the processes of privatization of land management in selected transition countries and (2) the post-privatization changes in land administration institutions which are being crafted to establish land markets. It begins with the proposition that there are similar land market institutional problems which most "transition" countries are facing, due largely to common experiences in creating command economies during the past 50-80 years and the almost simultaneous decisions of these countries to move toward market political economies in the late 1980s and early 1990s. Each country has had unique historical experiences, but this paper proposes that there is enough similar institutional history among the transition countries to venture into comparative analysis. In this regard, the Albanian experience with land market institutional development is presented as being potentially relevant to experiences in other transition countries of Europe and the former Soviet Union. The broad question is: How can countries construct the institutions of immovable property markets once they have made the political-economic decision to "go market"?Land use--Government policy--Europe, Eastern, Land use--Economic aspects--Europe, Eastern, Land tenure--Government policy--Europe, Eastern, Land administration--Europe, Eastern, Land administration--Albania, Land markets--Europe, Eastern, Land markets--Albania, Privatization--Europe, Eastern, Post-communism, Land Economics/Use,

Size and composition of the central bank balance sheet: revisiting Japan's experience of the quantitative easing policy

This paper re-examines Japan's experience of the quantitative easing policy in light of the policy responses against the current financial and economic crisis. Central banks use various unconventional measures in the range of financial assets being purchased and in the scale of such purchases. As the scope of such unconventional measures expands, it is often emphasized that the U.S. Federal Reserve policy reactions focus more on the asset side of its balance sheet, the so-called credit easing. By contrast, the Bank of Japan's quantitative easing policy from 2001 to 2006 set a target for the current account balances, the liability side of its balance sheet. It is crucial to understand that central banks combine the two elements of their balance sheets, size and composition, to enhance the overall effects of unconventional policy measures, given constraints on policy implementation.Financial markets ; Monetary policy ; Banks and banking, Central ; Financial crises

Size and Composition of the Central Bank Balance Sheet: Revisiting Japanfs Experience of the Quantitative Easing Policy

This paper re-examines Japanfs experience of the quantitative easing policy in light of the policy responses against the current financial and economic crisis. Central banks use various unconventional measures in the range of financial assets being purchased and in the scale of such purchases. As the scope of such unconventional measures expands, it is often emphasized that the U.S. Federal Reserve policy reactions focus more on the asset side of its balance sheet, the so- called credit easing. By contrast, the Bank of Japanfs quantitative easing policy from 2001 to 2006 set a target for the current account balances, the liability side of its balance sheet. It is crucial to understand that central banks combine the two elements of their balance sheets, size and composition, to enhance the overall effects of unconventional policy measures, given constraints on policy implementation.Quantitative easing, Credit easing, Unconventional monetary policy, Central bank balance sheet

Embedded Trusted Monitoring and Management Modules for Smart Solar Panels

This paper investigates developing a prototype of smart solar panels. This architecture consists of a panel monitoring module and the central management unit. The monitoring module is to be embedded inside each PV panel making it secure to transfer the trusted data via Wi-Fi to the central Management unit (which can accommodate an array of PV panels in an installation). This module is required for data storage and provides the ability to upload secure data to the cloud. This platform presents the ability to securely manage large numbers of rooftop solar panels in a distributed ledger by implementing block chain algorithm. For achieving this purpose, Module 400 is envisaged to be turned into a Blockchain node as it provides the infrastructure to implement this technology