Who should be counterparties to central banks? (Premium)
Central banks have shown two models for interacting with counterparties. In the Federal Reserve’s primary dealer system, there are a limited number of participants. On the other hand, the European Central Bank interacts directly with a wide range of counterparties that can include non-banks. Is one model better than the other for managing transmission of central bank policies? This content requires registration. Get access today by signing up here.