goals of monetary policy ppt

... interest rate on overnight loans of reserves from one bank to another  Primary indicator of the stance of monetary policy Chapter 6 Tools and goals of Monetary Policy Copyright © 2007 Pearson ... rights reserved. 15-2 Tools of Monetary Policy • Open market operations  Affect the quantity of reserves and the monetary base • Changes in borrowed reserves  Affect the monetary base • Changes ... Addison-Wesley. All rights reserved. 15-23 GOALS OF MONETARY POLICY 6 GOALS: • High employment • Economic growth • Low and stable inflation • Stability of financial markets • Interest-rate stability • Foreign...

Ngày tải lên: 10/03/2014, 19:20

... in the response of bank rates to monetary policy should decrease over time by virtue of the implementation of the single monetary policy, money market integration and the growth of debt securities ... sources of interest income. The sluggishness of most bank deposit rates is such that the key parameter of the response of interest income to the monetary policy instrument is likely to be the size of ... of firms and households. These two determinants of the interest rate channel of monetary policy are particularly interesting to monitor because they may be slow to adapt to the new monetary policy regime....

Ngày tải lên: 15/03/2014, 14:20

Ngày tải lên: 29/03/2014, 13:20

Ngày tải lên: 29/03/2014, 13:20

... constructed an index of the expected effects of monetary policy by summing the entries for each country. We expect large effects of monetary policy when a country exceeds the median value of the index. ... Given the large 16 To identify the monetary policy shock it is sufficient to determine the position of the monetary policy instrument; the ordering of the variables in the groups before and ... the effects of monetary policy on GDP and residential property prices are large when variable-rate mortgages are prevalent. Surprisingly, the reaction of equity prices to monetary policy is almost...

Ngày tải lên: 24/10/2012, 09:40

Ngày tải lên: 15/11/2013, 20:27

... - 35 Receiver General Auctions I • Bank of Canada neutralizes public auctions of Receiver General balances • E.g. net government receipt of $100 Bank of Canada Assets Liabilities Government ... of Last Resort • Bank of Canada important in preventing financial panics • Acts as lender of last resort. • Provides emergency lending assistance (against eligible collateral) for maximum of ... transactions (over $50,000). • Transactions account for < 1% of the total number of transactions • They make up 94% of the value of transactions in Canada Copyright  2011 Pearson Canada...

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 ... Channel Monetary policy can affect firms’ balance sheets in several ways. For example, expansionary monetary policy, ↑ P e and ↑ the NW of firms and so leads to an ↑ in I and Y. The monetary policy ... 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 expansionary monetary policy...

Ngày tải lên: 05/01/2014, 17:01

Ngày tải lên: 15/03/2014, 01:20

... Revenue and Monetary Policy Joseph H. Haslag Monetary Policy Comes of Age: A Twentieth Century Odyssey Marvin Goodfriend Lessons on Monetary Policy from the 1980s Benjamin M. Friedman Monetary Policy ... im- plementation of monetary policy, and the management of interest rates. The companion volume, the Handbook of Fiscal Policy, contains several articles that explain the development of government fiscal policymaking ... Department, Federal Reserve Bank of San Francisco Against the Tide: Malcolm Bryan and the Introduction of Monetary Aggregate Targets R. W. Hafer The Goals of U.S. Monetary Policy John P. Judd and Glenn...

Ngày tải lên: 15/03/2014, 05:20

... strength of monetary policy is likely to be weakened when banks face binding capital constraints. A SIMPLE MODEL OF BANK BEHAVIOR To establish how the size of the effect of monetary policy is ... Deposits Capital DISCUSSION 79 of monetary policy continues to operate even though leverage-based capital requirements are binding. 1 To summarize, the effect of capital requirements on the transmis- sion of monetary policy ... liabilities. R+ S + L =K+ DD+ CD (1) BANK LENDING AND TRANSMISSION OF MONETARY POLICY 65 of monetary policy. Table 1 shows that the sum of the three coefficients on the change in the federal funds...

Ngày tải lên: 15/03/2014, 10:20

... functioning of the bank lending channel of monetary policy. As a result of a very fast process of financial innovation (including the use of credit derivatives and the new role of institutional ... are more sheltered from the effects of monetary policy shocks. We also analyse the effect of a monetary policy change on bank lending relative to the level of the intermediary’s risk. We therefore ... bulk of existing evidence was undertaken under the auspices of the Monetary Transmission Network in 2002, which was only a handful of years after the start of monetary union. Second, the role of...

Ngày tải lên: 15/03/2014, 10:20

... trades off bank risk and credit supply, and show that monetary policy affects both sides of this trade-off. Hence, regulation cannot neutralize the policy rate’s impact, and monetary policy matters ... provision of credit. Monetary policy affects both financial stability and credit growth, both sides of a regulator’s trade-off, which means that the regulator cannot reverse the effects of interest ... regulation and monetary policy, instead of setting each separately. Our paper is quite detailed in its modelling of the banking sector, but not of the macroeconomy. It thus differs from most of the...

Ngày tải lên: 22/03/2014, 21:20

... (2001) An empirical comparison of Bundesbank and ECB monetary policy rules. Board of Governors International Finance Discussion Papers, # 705. Fuhrer, J.C. (1996) Monetary policy shifts and long-term ... between the public’s perception of in‡ation which result from the observed behaviour of monetary authorities, and the policy objective of the latter, while the same policy appears e¢ cient under ... Paper, # 2002-40. 29 of structural changes in parameters around 1998. So it appears interesting to study the impact of the founding of the ECB on the public perception of monetary policy. In particular,...

Ngày tải lên: 22/03/2014, 23:20

... we study two kinds of unconventional monetary policy: long- term nominal interest rates as operating instruments of monetary policy and announcements about the future path of the short-term rate. ... context of a model in which the risk premium is endogenous and examine two kinds of unconventional monetary policy: long-term nominal interest rates as operating instruments of monetary policy ... characterise regions of existence, uniqueness and multiplicity of the equilibrium in the space of the structural parameters, in particular, in the space of the parameters of the monetary policy rule. Figure...

Ngày tải lên: 22/03/2014, 23:20

Ngày tải lên: 23/03/2014, 05:22

Ngày tải lên: 29/03/2014, 01:20

Ngày tải lên: 29/03/2014, 13:20

Ngày tải lên: 29/03/2014, 13:20

Ngày tải lên: 28/06/2014, 08:20