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Nor is the shift from direct lending to auction sure to work: for all the praise heaped upon the ECB, the spread between the ECB's repo rate and euro-denominated interbank rates is no less worrying than that in America or Britain.
ECONOMIST: A collaboration over the credit crisis
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The hope is that by extending the maturity of central-bank money, broadening the range of collateral against which banks can borrow and shifting from direct lending to an auction, the central bankers will bring down spreads in the one- and three-month money markets.
ECONOMIST: A collaboration over the credit crisis
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Last January, the Fed started lending through its term auction facility twice a month in order to flood the financial system with cash.
FORBES: Obama reportedly goes for change--and experience.