Money Stock Control and Inflation Targeting in Germany

A State Space Modelling Approach to the Bundesbank’s Operating Procedures and Intermediate Strategy

Business & Finance, Economics, Macroeconomics, Finance & Investing, Finance
Cover of the book Money Stock Control and Inflation Targeting in Germany by Claus Brand, Physica-Verlag HD
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Claus Brand ISBN: 9783642576010
Publisher: Physica-Verlag HD Publication: December 6, 2012
Imprint: Physica Language: English
Author: Claus Brand
ISBN: 9783642576010
Publisher: Physica-Verlag HD
Publication: December 6, 2012
Imprint: Physica
Language: English

1.1 Intermediate strategies for monetary policy The launch of a single European currency in January 1999 has been sparking a heated debate over what strategy the European Central Bank's policy should be based on so as to distribute and maintain monetary stability in Europe. In order to pass the Bundesbank's reputation as a tough inflation fighter on to the European Central Bank there have been strong efforts to make the ECB a close copy of the Bundesbank. It might be surmised that there will be a lot of similarities in its intermediate strategies. Among other indicators, the ECB's policy will be based on the growth rate of a broad monetary aggregate consistent with its definition of price stability. As a key instrument in the new central bank's instruments, REPO operations will constitute the main refinancing source of private banks and, in addition, minimum reserve requirements have been introduced to facilitate the authority's command over the banking sector's liquidity by means of stabilising the demand for central bank money. After having introduced monetary targeting in the 1970s, in the 1980s, the Bank of England and the Fed soon abandoned it again, because of distor­ tions from financial innovations and currency substitution. But the Bundes­ bank strongly defended its intermediate strategy of monetary targeting and advocated its implementation in the European System of Central Banks.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

1.1 Intermediate strategies for monetary policy The launch of a single European currency in January 1999 has been sparking a heated debate over what strategy the European Central Bank's policy should be based on so as to distribute and maintain monetary stability in Europe. In order to pass the Bundesbank's reputation as a tough inflation fighter on to the European Central Bank there have been strong efforts to make the ECB a close copy of the Bundesbank. It might be surmised that there will be a lot of similarities in its intermediate strategies. Among other indicators, the ECB's policy will be based on the growth rate of a broad monetary aggregate consistent with its definition of price stability. As a key instrument in the new central bank's instruments, REPO operations will constitute the main refinancing source of private banks and, in addition, minimum reserve requirements have been introduced to facilitate the authority's command over the banking sector's liquidity by means of stabilising the demand for central bank money. After having introduced monetary targeting in the 1970s, in the 1980s, the Bank of England and the Fed soon abandoned it again, because of distor­ tions from financial innovations and currency substitution. But the Bundes­ bank strongly defended its intermediate strategy of monetary targeting and advocated its implementation in the European System of Central Banks.

More books from Physica-Verlag HD

Cover of the book Information Technology and Innovation Trends in Organizations by Claus Brand
Cover of the book Intellectual Property Rights by Claus Brand
Cover of the book Modelling Value by Claus Brand
Cover of the book Organisation and Work Beyond 2000 by Claus Brand
Cover of the book Governance Structures and Mechanisms in Public Service Organizations by Claus Brand
Cover of the book Supply Chain and Logistics in National, International and Governmental Environment by Claus Brand
Cover of the book Success Factors of Regional Strategies for Multinational Corporations by Claus Brand
Cover of the book Managing Diversified Portfolios by Claus Brand
Cover of the book Non-Standard Employment and Quality of Work by Claus Brand
Cover of the book Asymmetric Economic Integration by Claus Brand
Cover of the book Risk Management in Credit Portfolios by Claus Brand
Cover of the book New Developments in the Theory of Networks by Claus Brand
Cover of the book Außenhandel im Wandel by Claus Brand
Cover of the book Resourcing Small and Medium Sized Enterprises by Claus Brand
Cover of the book Designing an Efficient Management System by Claus Brand
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy