Monetary Policy

  1. Conventional Tools of Monetary Policy
    1. The Policy Interest Rate
      1. Federal Funds Rate
        1. Definition and Role
          1. Target vs. Effective Rate
            1. Federal Funds Market
            2. Other Policy Rates
              1. Bank Rate
                1. Repo Rate
                  1. Official Cash Rate
                  2. Interest Rate Corridors
                    1. Upper Bound (Lending Rate)
                      1. Lower Bound (Deposit Rate)
                        1. Corridor Width
                      2. Discount Window Operations
                        1. Primary Credit
                          1. Eligibility Requirements
                            1. Interest Rate Setting
                            2. Secondary Credit
                              1. Purpose and Conditions
                              2. Seasonal Credit
                                1. Agricultural and Tourism Sectors
                                2. Stigma Effect
                                  1. Market Perceptions
                                    1. Usage Patterns
                                  2. Open Market Operations
                                    1. Mechanism of OMOs
                                      1. Primary Dealers
                                        1. Auction Process
                                          1. Settlement Procedures
                                          2. Types of Operations
                                            1. Outright Purchases and Sales
                                              1. Permanent Market Operations
                                                1. Portfolio Management
                                                2. Repurchase Agreements
                                                  1. Overnight Repos
                                                    1. Term Repos
                                                      1. Reverse Repos
                                                    2. Implementation Frameworks
                                                      1. Reserves Targeting
                                                        1. Interest Rate Targeting
                                                      2. Reserve Requirements
                                                        1. Calculation Methods
                                                          1. Lagged Reserve Accounting
                                                            1. Contemporaneous Reserve Accounting
                                                            2. Reserve Ratios
                                                              1. Demand Deposits
                                                                1. Time Deposits
                                                                  1. Eurocurrency Deposits
                                                                  2. Impact on Banking System
                                                                    1. Cost of Compliance
                                                                      1. Competitive Effects
                                                                      2. International Practices
                                                                        1. Countries with Reserve Requirements
                                                                          1. Countries without Reserve Requirements

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                                                                      3. The Structure and Function of Central Banks

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                                                                      5. The Monetary Policy Transmission Mechanism