Monetary policy in a channel system
Aleksander Berentsen and
Cyril Monnet
Journal of Monetary Economics, 2008, vol. 55, issue 6, 1067-1080
Abstract:
Channel systems for conducting monetary policy are becoming increasingly popular. Despite its popularity, the consequences of implementing policy with a channel system are not well understood. We develop a general equilibrium framework of a channel system and study the optimal policy. A novel aspect of the channel system is that a central bank can "tighten" or "loosen" its policy without changing its policy rate. This policy instrument has so far been overlooked by a large body of the literature on the optimal design of interest-rate rules.
Keywords: Monetary; policy; Interest; rates; Search (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (72)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304-3932(08)00096-2
Full text for ScienceDirect subscribers only
Related works:
Working Paper: Monetary policy in a channel system (2008) 
Working Paper: Monetary Policy in a Channel System (2007) 
Working Paper: Monetary Policy in a Channel System (2006) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:55:y:2008:i:6:p:1067-1080
Access Statistics for this article
Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser
More articles in Journal of Monetary Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().