from the central bank's role as a monopolist over the supply of bank reserves. Several trends already visible in the … efficacy of monetary policy. These developments include the erosion of the demand for bank-issued money, the proliferation of … nonbank credit, and aspects of the operation of bank clearing mechanisms. What to make of these threats from a public policy …

variation in the supply of central bank liabilities. In effect, the announcement effect has displaced the liquidity effect as … practice, including in particular reserve averaging procedures and a commitment, either explicit or implicit, by the central … bank to lend or absorb reserves in response to differences between the policy interest rate and the corresponding target. A …

minimize the length and severity of the recession, would require a stronger commitment to low interest rates for an extended …

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of … the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this … that a central bank that wants to achieve maximum stability of economic activity should use a price index that gives …

the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource … seignorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv …) how central bank assets create income risk, and whether or not this threatens its solvency, and (v) how the central bank …

instrument of monetary policy. We show that by paying an appropriate rate on reserves, the central bank can pin the price level …

via contractions in credit and disruption in financial markets. Managing the size and composition of the central bank …

style of central banking affects central banks' solvency. A central bank is insolvent if its requirement to pay dividends to … Bank), and exchange-rate risk (central banks of small open economies). We find that a central bank that pays dividends … circumstances, the dividend will be negative, meaning that the government is making a payment to the bank. If the charter does not …