Description
Book SynopsisThe first of its kind, this book is entirely dedicated to the implementation of monetary policy. Monetary policy implementation has gone through tremendous changes over the last twenty years, which have witnessed the quiet end of ''reserve position doctrine'' and the return of an explicit focus on short-term interest rates. Enthusiastically supported by Keynes and later by the monetarist school, reserve position doctrine was developed mainly by US central bankers and academics during the early 1920s, and at least in the US became the unchallenged dogma of monetary policy implementation for sixty years. The return of interest rate targeting also corresponds largely to the restoration of central banking principles established in the late 19th century.Providing a simple theory of monetary policy implementation, Bindseil goes on to explain the role of the three main instruments (open market operations, standing facilities, and reserve requirements) and reviews their use in the twentieth century. In closing, he summarizes current views on efficient monetary policy implementation.
Table of ContentsPreface ; 1. Monetary policy implementation within the theory of monetary policy ; 2. The central bank balance sheet and the quantity side of monetary policy implementation ; 3. The control of short-term interest rates: a simple model ; 4. Standing facilities ; 5. Open market operations ; 6. Reserve requirements ; 7. Practice of monetary policy implementation in the 20th century ; 8. From the old to the new view on monetary policy implementation
