In this seminar Dr Morten Bech will provide an overview of his recent paper, The impact of unconventional monetary policies on the overnight interbank market. In it he identifies four facts based on a review of six markets in the developed world. Dr Bech discusses how a surge in the amount of excess reserves drives the overnight rate to the floor of the corridor, reduces the volatility of the overnight rate, and decreases market volume. Moreover, counterparty risk pushes up the overnight rate. Dr Bech compares these facts to previous models and also discusses the implications for the future of monetary policy implementation.

Dr Morten Bech joined the Bank for International Settlements in the summer of 2011 and is currently a Principal Economist in the Monetary and Economics Department and serves as Secretary to the Markets Committee. He has previously worked for the Federal Reserve Bank of New York and the Danish central bank. He has written on different issues relating to monetary policy implementation, money markets, network topology of financial markets, large value payment systems and systemic risk.

This seminar is presented by the Centre for Applied Macroeconomic Analysis at Crawford School of Public Policy, The Australian National University.