Implementation of Monetary Policy: How Do Central Banks Set Interest Rates? doc

... as of the time of writing the ECB has never changed its 2 percent reserve requirement (nor the set of deposits to which it applies). 16 Implementation of Monetary Policy: How Do Central Banks Set ... Traditional Understanding of How They Do That” The traditional account of how central banks go about setting a short-term interest rate— the staple of g...

Ngày tải lên: 29/03/2014, 13:20

... WORKING PAPER SERIES HOW DO BANKS SET INTEREST RATES? Leonardo Gambacorta Working Paper 10295 http://www.nber.org/papers/w10295 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, ... size and monetary policy are insignificant. The fact that the interest rate on short term lending of smaller banks is not more sensitive to monetary policy than that...

Ngày tải lên: 15/03/2014, 14:20

Ngày tải lên: 22/03/2014, 17:20

... variance of the loan/deposit portfolio. However, corporate loan dollarization is also of interest. In fact, as our data set shows, it is sizeable and generally higher than household loan dollarization. ... direction of the movements of loan and deposit dollarization and of interest rate differentials as φ and F change are very robust across different parameterizations of the mo...

Ngày tải lên: 22/03/2014, 23:20

... attempts by central banks to offset asset price movements may simply 1 The chapters in Hunter et al. (2003) provide an excellent overview of the interlinkages between monetary policy, asset prices ... triggered by the adoption of tight monetary policy in Germany to offset the aggregate demand effects of German Reunification. The figure indicates that following the collaps...

Ngày tải lên: 24/10/2012, 09:40

... Lessons for Monetary Policy Strategy from the Global Financial Crisis (cont’d) • How should Central banks respond to asset price bubbles? – Asset-price bubble: pronounced increase in asset prices ... reserved. 16-3 Other Goals of Monetary Policy • Five other goals are continually mentioned by central bank officials when they discuss the objectives of monetary policy:...

Ngày tải lên: 15/11/2013, 20:27

... account for < 1% of the total number of transactions • They make up 94% of the value of transactions in Canada Copyright  2011 Pearson Canada Inc. 17 - 20 How Monetary Policy Affects ... 21 Nominal Interest Rates and Monetary Policy • Bank of Canada uses nominal overnight interest rate as operating instrument • Effects on the monetary policy on economic acti...

Ngày tải lên: 05/01/2014, 16:58

... - 13 Transmission Mechanisms of Monetary Policy Traditional Interest- Rate Channels: expansionary monetary policy i r ↓, I ↑, Y↑ The interest rate channel of monetary transmission applies ... the Importance of Money • Monetary policy does not matter at all • Three pieces of structural model evidence – Low interest rates during the Great Depression indicated expans...

Ngày tải lên: 05/01/2014, 17:01

... whether central banks do respond to exchange rates. The main result of this paper is that the central banks of Australia, New Zealand and the U.K. do not, whereas the Bank of Canada does include the ... nominal interest rate rules. The main finding of this paper is that the central banks of Australia, New Zealand and the U.K. do not respond to exchange rate moveme...

Ngày tải lên: 06/03/2014, 14:20

... Deregulation and Monetary Control Act of 1980 sets the reserve requirement the same for all depository institutions • 3% of the first $48.3 million of checkable deposits; 10% of checkable deposits ... reserved. 15-22 Monetary Policy Tools of the European Central Bank (cont’d) • Reserve Requirements  2% of the total amount of checking deposits and other short-term depo...

Ngày tải lên: 10/03/2014, 19:20