Provision of liquidity

Unless otherwise defined, the provision of liquidity by a central bank to meet its liquidity needs. – In principle, the ECB has to ensure the supply of liquidity to solvent banks and can thus counteract liquidity squeezes and shortages. However, it is not one of its tasks to restore the lost solvency of banks or even sovereigns. – See European Monetary Union, Fundamental Error, ECB Fallacy, Larghezza, Liquidity of the Banking System, Quantitative Easing. – Cf. ECB Monthly Bulletin, January 2014, pp. 75 ff. (providing a detailed account of the ECB’s liquidity policy; many overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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