https://wiki-dev.treasurers.org/w/index.php?action=history&feed=atom&title=Central_bank_put 2026-04-25T22:57:42Z Revision history for this page on the wiki MediaWiki 1.40.0 https://wiki-dev.treasurers.org/w/index.php?title=Central_bank_put&diff=9025&oldid=prev 2019-04-15T06:54:14Z

<p>Layout.</p> <table style="background-color: #fff; color: #202122;" data-mw="interface"> <col class="diff-marker" /> <col class="diff-content" /> <col class="diff-marker" /> <col class="diff-content" /> <tr class="diff-title" lang="en-GB"> <td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td> <td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 06:54, 15 April 2019</td> </tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l24">Line 24:</td> <td colspan="2" class="diff-lineno">Line 24:</td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>:''The Treasurer magazine, Cash Management Edition April 2019 p15, Kallum Pickering, senior economist at Berenberg Bank.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>:''The Treasurer magazine, Cash Management Edition April 2019 p15, Kallum Pickering, senior economist at Berenberg Bank.''</div></td></tr> <tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr> <tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr> <tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div><del style="font-weight: bold; text-decoration: none;"></del></div></td><td colspan="2" class="diff-side-added"></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr> <tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr> <!-- diff cache key acta01_wikidev:diff::1.12:old-9024:rev-9025 --> </table>

imported>Doug Williamson https://wiki-dev.treasurers.org/w/index.php?title=Central_bank_put&diff=9024&oldid=prev 2019-04-14T21:03:11Z

<p>Create page. Source: The Treasurer, Cash Management Edition April 2019, p15.</p> <p><b>New page</b></p><div>''Monetary policy.''<br /> <br /> 'Central bank put' is an abbreviation for central bank put option.<br /> <br /> <br /> The concept of the central bank put option is an assumption that central banks will intervene to prevent excessive falls in equity and other market valuations, usually by reducing interest rates.<br /> <br /> If this were true, then investors would effectively be protected by the central bank against extreme losses from falls in market prices.<br /> <br /> This, in turn, could encourage excessive risk-taking, effectively underwritten by the expectation of central bank support.<br /> <br /> <br /> This would be effectively granting a free put option to investors.<br /> <br /> Such an expectation could act as a form of moral hazard in markets.<br /> <br /> <br /> The concept was first popularised as the 'Greenspan put' when Alan Greenspan was chair of the US Federal Reserve from 1987 to 2006, and he was considered to be following this policy.<br /> <br /> <br /> :&lt;span style=&quot;color:#4B0082&quot;&gt;'''''Acid test of central bank put'''''&lt;/span&gt;<br /> <br /> :&quot;The true acid test of the central bank 'put' will come when inflation starts to rear its ugly head.&quot;<br /> <br /> :''The Treasurer magazine, Cash Management Edition April 2019 p15, Kallum Pickering, senior economist at Berenberg Bank.''<br /> <br /> <br /> <br /> <br /> <br /> == See also ==<br /> * [[Acid test]]<br /> * [[Call option]]<br /> * [[Central bank]]<br /> * [[Inflation]]<br /> * [[Monetary policy]]<br /> * [[Moral hazard]]<br /> * [[Option]]<br /> * [[Put option]]<br /> <br /> [[Category:The_business_context]]<br /> [[Category:Financial_products_and_markets]]</div>

imported>Doug Williamson