The influence of interbank money market stress levels on credit markets during the postcrisis period in the US and the Euro area

Despite the anti-crisis measures in the US and the euro area that were the policy response to the global financial crisis in 2007 and 2008, the stress on the interbank money market was still present in 2009 and 2010. The increasing inflationary pressures will require an increase in the ECB key inter...

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Bibliographic Details
Published in:Ekonomski anali 2011, Vol.56 (189), p.7-26
Main Authors: Djukic, Djordje, Djukic, Malisa
Format: Article
Language:English
Subjects:
credit market
financial crisis
interest rate
money market
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Summary:Despite the anti-crisis measures in the US and the euro area that were the policy response to the global financial crisis in 2007 and 2008, the stress on the interbank money market was still present in 2009 and 2010. The increasing inflationary pressures will require an increase in the ECB key interest rate in the second half of 2011. The over indebted euro area countries will have to raise funds by issuing and selling bonds with high yields. Taking into account such an environment, in this paper we analyze the relevant interbank money market stress indicators during 2010 and the beginning of 2011, in order to estimate the effects of money markets interest rate movements on credit market interest rates, primarily in the euro area, during the post-crisis period. nema PR Projekat Ministarstva nauke Republike Srbije, br. 179065 i 47009: The role of the state in a new model of economic growth of Serbia i European integration and social and economic changes in the Serbian economy on the way to the EU
ISSN:0013-3264
1820-7375
DOI:10.2298/EKA1189007D