While the goals that guide monetary policy in different countries are very similar, central banks diverge in their … methods of implementing policy. This study of the policy frameworks of four central banks—the Federal Reserve, the European … Central Bank, the Bank of England, and the Swiss National Bank—focuses on two notable areas of difference. The first is the …

acquired by central banks, and changes in the interest rate paid on reserves. We first extend a standard New Keynesian model to … allow a role for the central bank’s balance sheet in equilibrium determination and then consider the connections between … the strict sense and targeted asset purchases by a central bank, arguing that, according to our model, while the former is …

sources of (potentially time-varying) credit spreads and to allow a role for the central bank's balance sheet in determining … prescriptions and to consider additional dimensions of central bank policy--variations in the size and composition of the central …

. The supply of dollars by the Federal Reserve to foreign central banks via reciprocal currency arrangements (swap lines … capital and partly to heightened counterparty credit risk. Central bank interventions helped reduce the funding liquidity risk …

and the optimal policy of a central bank in response to both idiosyncratic and aggregate shocks. In particular, we … the market ex post. We show that a central bank should use different tools to manage different types of shocks …

maximize aggregate ex ante social welfare. Indeed one or, more surprisingly, both types of agents may benefit if the central …