's original views about the rate of interest on bank credit have barely been commented so far. In this paper, we endeavour to link … these views with his theory of central banking in order to demonstrate that Thornton advocated an active use of the Bank of … quantity of circulating banknotes. Nevertheless, Thornton does not appear to have conceived the Bank's rate as a true "key rate …

Can the central bank of a small open economy be mandated with the maintenance of both fixed exchange rates and monetary … independence, and still succeed in the long term? Looking at a pioneering experiment put in place by the National Bank of Belgium … stabilisation of exchange rates, but through the stabilisation of central bank liquidity (i.e. the ‘margin of manoeuvre' available …

This paper examines whether reputation concerns can induce the central bank to implement the time-inconsistent optimal … to the possible inflation bias; second, it enables us to model more satisfactorily the reputation of the central bank by …

plays a non-trivial role in explaining the euro area business cycle; 3) this provides a rationale for the central bank (the … European Central Bank) to factor in monetary developments, by exploiting the long-run relationship between money growth and …

This paper examines the art of central banking as practised by the European Central Bank (ECB) through the prism of … Goodfriend's (2009) determination of the three policies that fall within the remit of a central bank: monetary policy, which … interbank money market. This paper shows in particular that a central bank not only has the capacity but indeed must strive to …

of policy have recently been of greater importance: changes in the supply of bank reserves, changes in the assets … 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 …