On Thursday, 26 January 2017, Prof. Nyborg from the Department of Banking and Finance will present new research results on a topic so far neglected in the public discourse: the collateral policy of the European Central Bank.
Which securities does the ECB accept in exchange for central bank money and how are these securities priced? In his recently published book “Collateral Frameworks: The Open Secret of Central Banks”, he shows that collateral policy in the euro area favors illiquid assets and impairs market forces and discipline. Combined with other policies, the existing collateral policy even provides indirect bailouts to banks and sovereigns.
The event is open for the public. The reading will take place on 26 January 2017 from 18:00 to 19:00 in the main building of the University of Zurich (Aula, KOL-G-201).