Monetary Policy Implementation: Common Goals But Different Practices

11 Pages Posted: 7 Dec 2011

See all articles by Marlene Amstad

Marlene Amstad

The Chinese University of Hong Kong, Shenzhen

Antoine Martin

Federal Reserve Bank of New York - Research and Statistics

Date Written: November 1, 2011

Abstract

While the goals that guide monetary policy in different countries are very similar, central banks diverge in their methods of implementing policy. This study of the policy frameworks of four central banks — the Federal Reserve, the European Central Bank, the Bank of England, and the Swiss National Bank — focuses on two notable areas of difference. The first is the choice of an interest rate target, a standard feature of conventional monetary policy. The second is the choice of instruments for managing the central banks’ expanded balance sheets — a decision made necessary by the banks’ unconventional practice of acquiring large quantities of assets during the financial crisis.

Keywords: Monetary policy implementation, Financial crisis

JEL Classification: E52, E58

Suggested Citation

Amstad, Marlene and Martin, Antoine, Monetary Policy Implementation: Common Goals But Different Practices (November 1, 2011). Current Issues in Economics and Finance, Vol. 17, No. 7, 2011. Available at SSRN: https://ssrn.com/abstract=1969430

Marlene Amstad

The Chinese University of Hong Kong, Shenzhen ( email )

Antoine Martin (Contact Author)

Federal Reserve Bank of New York - Research and Statistics ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-6943 (Phone)

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