The Eurosystem, the US Federal Reserve and the Bank of Japan: Similarities and Differences

47 Pages Posted: 11 Apr 2007

See all articles by Dieter Gerdesmeier

Dieter Gerdesmeier

European Central Bank (ECB)

Francesco Paolo Mongelli

European Central Bank (ECB); Goethe University Frankfurt

Barbara Roffia

European Central Bank (ECB)

Date Written: March 2007

Abstract

The paper provides a systematic comparison of the Eurosystem, the US Federal Reserve and the Bank of Japan. These monetary authorities exhibit somewhat different status and tasks, which reflect different historical conditions and national characteristics. However, widespread changes in central banking practices in the direction of greater independence and increased transparency, as well as changes in the economic and financial environment over the past 15-20 years, have contributed to reduce the differences among these three world's principal monetary authorities. A comparison based on simple "over-the-counter" policy reaction functions shows no striking differences in terms of monetary policy implementation.

Keywords: Monetary policy, central banks and their policies, monetary policy committees

JEL Classification: E40, E52, E58

Suggested Citation

Gerdesmeier, Dieter and Mongelli, Francesco Paolo and Roffia, Barbara, The Eurosystem, the US Federal Reserve and the Bank of Japan: Similarities and Differences (March 2007). ECB Working Paper No. 742. Available at SSRN: https://ssrn.com/abstract=975680

Dieter Gerdesmeier (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Francesco Paolo Mongelli

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Goethe University Frankfurt ( email )

Gr├╝neburgplatz 1
Frankfurt am Main, 60323
Germany

Barbara Roffia

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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