. They trade off the cost of delaying a payment against the cost of borrowing liquidity from the central bank. The …

Central bank communication plays an important role in shaping market participants' expectations. This paper studies a … shows that agents' learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce "learning equilibria" in which the economy …

lender of last resort theory) in mounting rescue operations through the central bank. …

What inflation rate should the central bank target? The authors address determinacy issues related to this question in … principle holds in this environment. If the central bank elects to target sector A and responds to price movements in this …

This paper analyzes the restrictions necessary to ensure that the interest rate policy rule used by the central bank …

We document increased central bank independence within the set of industrialized nations. This increased independence …

Central banks in larger industrialized countries increasingly favor market operations, the buying and selling of … market operations, foreign central banks most commonly trade securities issued or guaranteed by their governments and …

Foreign exchange swaps have appeared for some time in the intervention toolkit of many central banks around the world …. 332), seven of fourteen industrial-country central banks surveyed listed foreign exchange swaps against either the U …