Atlanta Fed research offers 17th century lessons for proposed standing repo facility
Crises can pose demand and credibility challenges, researchers warn
The Federal Reserve should pay “careful regard” to earlier experiences with implementing a standing repo facility, as managing such facilities during crises can be challenging, warns research published by the Federal Reserve Bank of Atlanta.
Stephen Texas, William Roberds and Charles Kahn analyse a 17th century Dutch standing repo facility to draw historical lessons for the Fed, which is considering creating a similar facility following September’s repo market shock.
The Bank of Amsterdam
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