Asset Purchases Bolster Monetary Union Stability Amidst Default and Liquidity Risks, Study Finds
May 30, 2025
May 30, 2025
WASHINGTON, May 30 (TNSLrpt) -- The Federal Reserve Bank of San Francisco published a working paper (No. 2025-10) "Asset Purchases in a Monetary Union With Default and Liquidity Risks" in May 2025. Authored by Huixin Bi, Andrew Foerster and Nora Traum, the paper quantifies the effectiveness of targeted asset purchases and the expectations surrounding such programs in a monetary union grappling with sovereign default and financial liquidity risks. The study uses a two-country framework . . .