Implementation of Monetary Policy and the Central Bank's Balance Sheet

This paper discusses how the choice of central banks' operating targets influences the use of their monetary policy instruments and how the latter affect the central bank's balance sheet. This is of particular interest, since the monetary conditionality in IMF-supported programs has tradit...

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Bibliographic Details
Main Author: Schaechter, Andrea
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2001
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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260 |a Washington, D.C.  |b International Monetary Fund  |c 2001 
300 |a 28 pages 
651 4 |a Brazil 
653 |a Depository Institutions 
653 |a Interest rates 
653 |a Credit 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Financial services 
653 |a Open market operations 
653 |a Short term interest rates 
653 |a Micro Finance Institutions 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Mortgages 
653 |a Money 
653 |a Central banks 
653 |a Money supply 
653 |a Monetary base 
653 |a Demand for Money 
653 |a Central bank balance sheet 
653 |a Banks and Banking 
653 |a Money Supply 
653 |a Demand for money 
653 |a Banking 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Central Banks and Their Policies 
653 |a Money Multipliers 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
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520 |a This paper discusses how the choice of central banks' operating targets influences the use of their monetary policy instruments and how the latter affect the central bank's balance sheet. This is of particular interest, since the monetary conditionality in IMF-supported programs has traditionally been linked to central bank balance sheet items. Quantity targeting tends to be practiced today mostly in countries in which money markets are not yet well-developed or a monetary aggregate is used as the intermediate target. Most other central banks prefer to target a short-term interest rate, which results in day-to-day changes in balance sheet items becoming endogenous