In response to the global financial crisis that started in August 2007, central banks provided extraordinary amounts of … liquidity to the financial system. To investigate the effect of central bank liquidity facilities on term interbank lending … shift in model estimates after the announcement of the liquidity facilities suggests that these central bank actions did …

This paper presents a model comparing the optimal degree of asset class diversification abroad by a central bank and a … sovereign wealth fund. We show that if the central bank manages its foreign asset holdings in order to meet balance of payments …

This paper takes the parameters in central bank loss functions as fundamental preferences to be estimated from the data … with senior central bank appointments. Optimizing central banks apply policy rules whose feedback coefficients are …

A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are … expectations to the central bank's goal and in so doing achieve superior stabilization of inflation and economic activity in an …

shifts in the central bank's inflation target. In this case, the agent's optimal forecast rule defined by the Kalman filter …

striking absence of such sensitivity since the central bank became independent. In Sweden, we find that forward inflation …