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State-of-the-art research from academics and policymakers on the role of and challenges to monetary policy during the ongoing financial crisis.
Countries with evolving monetary regimes that decide to embark on “the Journey to inflation targeting” may not be able to adopt a full-fledged inflation targeting regime immediately. Those countries would be better off adopting transitional arrangements that take advantage of the informational content of monetary aggregates, developing an economic analysis capacity, and concentrating on monetay operations aimed at steering money market interest rates. This approach would allow the central bank to buy time for developing the building blocks for effective monetary policy, support transparent central bank communication, and limit the potential for undesirable outcomes along the road.
This paper discusses the use of interest rates as the operating target for monetary policy in Tunisia and the roadmap for establishing the other building blocks of an inflation targeting framework. It argues that strengthening the effectiveness of the current monetary policy framework will facilitate the adoption of inflation targeting over time.
Using both academic and practitioner research, this is the most detailed book available that provides an account of open market operations, including discussions of central bank operations in Europe, North America, Australia and Japan.
As a continent, the economy of Europe is currently the largest on Earth. The European Union, or EU, an intergovernmental body composed of most of the European states, is one of the two largest in the world. Of the member states in the EU, Germany has the largest national economy. Thirteen EU countries share a common unit of currency, the Euro. Major economic sectors in Europe include agriculture, manufacturing, and investment. The majority of the EU's trade is with the United States, China, India, Russia and non-member European states. This book focuses on the latest economic and political issues in Europe.
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An accessible, intuitive outline of key developments in central banking practice and thinking.
A diverse body of research exists to explain why eligible voters don't go to the polls on election day. Theories span from the psychological (nonvoters have limited emotional engagement with politics and therefore lack motivation), to the social (politics is inherently social and nonvoters have limited networks), and the personal (nonvoters tend to be young, less educated, poor, and highly mobile). Other scholars suggest that people don't vote because campaigns are uninspiring. This book poses a new theory: uncertainty about the national context at the time of the election. During times of national crisis, when uncertainty is high, citizens are motivated to sort through information about eac...
This paper discusses key issues related to the conduct of monetary policy in countries that have Islamic banks. It describes the macrofinancial background and monetary policy frameworks where Islamic banks typically operate, and discusses the monetary transmission mechanism in economies where Islamic and conventional banking coexist. Most economies with Islamic banks also have conventional banks and this calls for a comprehensive approach to monetary policy. At the same time, a dual approach to monetary policy should be considered whenever the Islamic segment of the financial system is not as developed as the conventional one. The paper tries to shed light on potential spillovers between conventional and Islamic financial systems, and proposes specific recommendations on the design of Islamic monetary policy operations and for facilitating monetary transmission through the Islamic financial system.