scholarly journals Monetary Policy Objectives During the Crisis: An Overview of Selected Southeast European Countries

2015 ◽  
Vol 4 (1) ◽  
pp. 35-46 ◽  
Author(s):  
Aneta Krstevska
Keyword(s):  
Monetary Policy ◽  
Central Banks ◽  
European Countries ◽  
Price Stability ◽  
Output Gap ◽  
Southeast Europe ◽  
Simple Analysis ◽  
Output Stabilization ◽  
Policy Objectives ◽  
Central Bankers

Abstract The recent global crisis brought many challenges to the central bankers worldwide, including the issue of monetary policy objectives. In this view, besides price stability maintenance, a special attention by central bankers during the crisis was given to the output stabilization. This paper explores this issue on the case of a group of countries from Southeast Europe (SEE). For this purpose, rather simple analysis of the policy rate and output gap as well as output gap variability by countries have been provided, aimed at giving some initial insights of the monetary policy and output stabilization during the crisis. Our findings pointed that the central banks in the analysed SEE countries paid attention to the output stabilization, specifically during the crisis period and that was presumably enabled by controllable inflation developments.

scholarly journals Regla de productividad y señoreaje: Una crítica al objetivo de estabilización de precios

2021 ◽  
pp. 53-103
Author(s):  
Juan Castañeda Fernández
Keyword(s):  
Monetary Policy ◽  
Key Words ◽  
Central Banks ◽  
Price Stability ◽  
Permit Price ◽  
Palabras Clave ◽  
Nominal Income ◽  
Monetary Equilibrium ◽  
The Stability ◽  
Central Bankers

The aim of the paper is to propose a new version of the productivity norm proposed by Hayek in 1928, as a feasible way to develop monetary policy by actual central banks. With this proposal, we are able both to review the convenience of the stability price objective adopted by most central banks and to permit price variations according to the evolution of productivity in increasingly open and competitive markets. By using a nominal income objective, central banks can distinguish, for example, between unwelcome monetary deflations and falling prices brought about by increases in productivity. With this objective, the degree of competition and of openness of an economy can also be taken into account by central bankers. Key words: Hayek’s productivity norm, price stability, neutral monetary policy, monetary equilibrium. Clasificación JEL: E3, E52. Resumen: Con este trabajo hemos actualizado la regla de estabilización de la renta nominal propuesta por Hayek en 1928 como criterio de emisión válido para los bancos centrales en la actualidad. A partir de su aplicación, la estabilidad de precios deja de ser el objetivo de la política monetaria, permitiéndose en su lugar movimientos de pre-cios a lo largo del tiempo como consecuencia natural de variaciones en las condiciones productivas de la economía, en presencia de mer-cados potencialmente abiertos a la competencia. Con ello estaremos en condiciones de diferenciar la respuesta monetaria óptima del ban-co central ante distintos tipos de deflación. Palabras clave: Regla de productividad de Hayek, estabilización de precios, política monetaria neutral, equilibrio monetario.

Putting the Program into Action, 1920–1928

2016 ◽  
Author(s):  
Simon James Bytheway ◽  
Mark Metzler
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Ad Hoc ◽  
Central Banks ◽  
Financial Globalization ◽  
International Network ◽  
Bank Of England ◽  
International Monetary Policy ◽  
Central Bankers

This chapter details how Montagu Norman of the Bank of England, in partnership with Benjamin Strong of the FRBNY, turned ad hoc wartime cooperation into a formal agenda. The paired ideas that national central banks should be autonomous, and that they should cooperate with each other, were first spelled out in a private “manifesto” that Norman circulated among fellow central bankers in 1921. Central bank cooperation was internationally recognized as a principle at the 1922 Genoa Conference, and it was also put into practice. Cooperation between central banks began primarily as informational cooperation, which includes not only the sharing of information but also the sharing and propagation of worldviews. An international network of central banks thus developed out of the war, as did the world's first truly coordinated system of international monetary policy. In these and other ways, financial globalization surged to a new level in the 1920s.

Analysis of the Analytical Balance Sheet of Central Bank of Republic of Turkey During 2000 - 2009 Period in Terms of Crises

2014 ◽  
pp. 1284-1302
Author(s):  
Yıldız Özkök
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Balance Sheet ◽  
Central Banks ◽  
Money Market ◽  
Price Stability ◽  
Primary Target ◽  
Monetary Aggregates ◽  
Analytical Balance ◽  
Republic Of Turkey

Today, Central Banks' primary target is to maintain the price stability. In that context, through their monetary policy, they intervene in the money market with different tools. The Analytical Balance Sheet was created upon summing up and offsetting Balance Sheet of the Central Bank of Republic of Turkey (CBRT) in order to represent specific monetary aggregates. By means of that, CBRT aims to make the balance sheet more understandable and simple. In this chapter, firstly the sub items of the Analytical Balance Sheet are explained; secondly, the economic crises of Turkey during 2000-2009 is mentioned; finally, effects of these crises on the CBRT's Analytical Balance Sheet, changes in monetary aggregates which are Currency Issued, Reserve Money, Monetary Base, and Central Bank's Money, and in this context structure of the monetary policy of the CBRT in this period is analyzed.

The Over-Burdened Central Bank and the Shift Away from Autonomy

2017 ◽  
Author(s):  
Pierre L. Siklos
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
Central Banks ◽  
Central Banking ◽  
Forward Guidance ◽  
Self Assessments ◽  
Crisis Conditions ◽  
Central Bankers ◽  
Influence Behavior

Many central banks took on additional responsibilities. Inadequate self-assessments remain unfinished almost a decade after the crisis erupted. Government-central bank relationships need to be conditioned on whether times are normal versus crisis conditions. Transparency confronts ambiguity when central banks must communicate the outlook and the conditionality of their decisions. Forward guidance was taken too far and ended up being futile. Central bankers simply exhausted their ability to influence behavior through mere words or ambiguous statements. This is a self-inflicted wound for institutions that are seen as overburdened. These forces leave central banking more vulnerable than is commonly acknowledged. Squaring the conventional objectives of monetary policy with the unclear aims of financial stability is difficult. Adequate limitations on the authority of central banks have yet to be thoroughly debated. We are nowhere near resolving the inherent tensions between old and new sets of central bank objectives.

Monetary Policy, Price Stability and Output Gap Stabilization

2002 ◽  
Vol 5 (2) ◽  
pp. 193-211 ◽  
Author(s):  
Vitor Gaspar ◽  
Frank Smets
Keyword(s):  
Monetary Policy ◽  
Price Stability ◽  
Output Gap

scholarly journals Are Central Banks In CEE Countries Concerned About The Burden Of Public Debt?

2017 ◽  
Vol 20 (1) ◽  
pp. 35-51 ◽  
Author(s):  
Joanna Mackiewicz-Łyziak
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rates ◽  
Public Debt ◽  
Central Banks ◽  
Output Gap ◽  
Markov Switching Model ◽  
The Czech Republic ◽  
Policy Regimes ◽  
Switching Model

The aim of this study is to analyze the monetary policy rules in the Czech Republic, Hungary and Poland, with public debt as an additional explanatory variable. We estimate linear rules by the GMM estimation and non-linear rules, using the Markov-switching model. Our findings suggest that in the Czech Republic and Poland the monetary authorities respond to growing public debt by lowering interest rates, while in Hungary the opposite may be observed. Moreover, we distinguish between passive and active monetary policy regimes and find that the degree of interest rate smoothing is lower and the response of the central banks to inflation and/or output gap is stronger in an active regime. In the passive regime, the output gap seems to be statistically insignificant.

scholarly journals Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule

2021 ◽  
Author(s):  
Rogelio De la Peña
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Monopolistic Competition ◽  
Financial Frictions ◽  
Small Open Economy ◽  
Central Banks ◽  
Welfare Cost ◽  
Policy Regimes ◽  
Policy Objectives ◽  
Single Instrument

It has been debated whether monetary policy should lean against the wind, i.e., if central banks should also respond to the build-up of financial imbalances. I contribute to the debate by showing that targeting the two policy objectives with a single instrument is more costly for a small-open economy than for a closed one. To this end, I develop a small-open economy DSGE model with the Bernanke-Gertler-Gilchrist financial accelerator that features financial frictions and monopolistic competition in goods markets. I then estimate this model for Mexico to explore the policy regimes yielding the lowest welfare cost. My main finding is that the Tinbergen rule is alive and well. In addition, my model is useful to gauge macroprudential measures effectiveness when discriminating against foreign liabilities.

scholarly journals Communication, Credibility, and Price Stability: Lessons Learned from Japan

2012 ◽  
pp. 1-4
Author(s):  
Owen F. Humpage
Keyword(s):  
Central Banks ◽  
Lessons Learned ◽  
Price Stability ◽  
Monetary Policies ◽  
The Public ◽  
European Central ◽  
The Past ◽  
Central Bankers

Over the past couple of decades, central banks have been taking steps to increase the transparency of their monetary policies through clearer communications with the public. While there are many differences between the economic challenges Japan has been struggling with in the past decade and those facing U.S. and European central bankers now, we can learn a great deal about combating deflation from Japan’s experiences.

scholarly journals The price stability oriented monetary policy of the European Central Bank

2010 ◽  
Vol 13 (3) ◽  
pp. 5-15
Author(s):  
Wojciech Gasiński ◽  
Anna Misztal
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
European Central Bank ◽  
Central Banks ◽  
Primary Objective ◽  
Price Stability ◽  
Economic Policies ◽  
European Central ◽  
Consumer Prices ◽  
European System

The aim of this paper is to present the price stability oriented monetary policy of the European Central Bank. The European Central Bank began activities in 1998 and the primary objective of the European System of Central Banks is to maintain price stability and the ESCB should also support the general economic policies in the Community. Monetary policy is a special tool that national governments and central banks uses to influence on its economy, especially to control the supply of money and to influence on the level of economic indicators. This paper investigates the assumed objective of the European System of Central Banks which is to maintain price stability. What is more, we would like to present the monetary policy strategy of the European Central Bank and analysis of the Harmonized Index of Consumer Prices.

Analysis of the Analytical Balance Sheet of Central Bank of Republic of Turkey During 2000 - 2009 Period in terms of Crises

2013 ◽  
pp. 110-127
Author(s):  
Yildiz Özkök
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Balance Sheet ◽  
Central Banks ◽  
Money Market ◽  
Price Stability ◽  
Primary Target ◽  
Monetary Aggregates ◽  
Analytical Balance ◽  
Republic Of Turkey

Today, Central Banks’ primary target is to maintain the price stability. In that context, through their monetary policy, they intervene in the money market with different tools. The Analytical Balance Sheet was created upon summing up and offsetting Balance Sheet of the Central Bank of Republic of Turkey (CBRT) in order to represent specific monetary aggregates. By means of that, CBRT aims to make the balance sheet more understandable and simple. In this chapter, firstly the sub items of the Analytical Balance Sheet are explained; secondly, the economic crises of Turkey during 2000-2009 is mentioned; finally, effects of these crises on the CBRT’s Analytical Balance Sheet, changes in monetary aggregates which are Currency Issued, Reserve Money, Monetary Base, and Central Bank’s Money, and in this context structure of the monetary policy of the CBRT in this period is analyzed.

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