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Forecasting banking system liquidity is crucial for the effective monetary policy implementation. This study investigates the effectiveness of various econometric and machine learning models in predicting the autonomous factors of banking system liquidity. The research compares widely used...
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Does the effect of monetary policy depend on the prevailing level of inflation? In order to answer this question, we … construct a parsimonious nonlinear time series model that allows for inflation regimes. We find that the effects of monetary … policy are markedly different when year-over-year inflation exceeds 5.5 percent. Below this threshold, changes in monetary …
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The overnight money market rate is a key monetary policy tool. In recent years, central banks worldwide have developed new monetary policy strategies aimed at keeping its deviations from the policy rate small and short-lived. This paper describes the main instruments used for this purpose by the...
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