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In this paper, we consider the extent to which central banks can improve financial stability and manage maturity transformation by the private sector through their ability to affect the public supply of short-term, safe instruments (STSI). First, we provide new evidence on two key ingredients for there to be a role for policy: the extent to which public and private shortterm debt are substitutes, and the relationship between the supply of STSI and the money premium, stemming from their liquid,doi:10.2139/ssrn.2534578 fatcat:zmbnmf3panfgbivm5gedrd72ri