The Fed’s 'Ample-Reserves' Approach to Implementing Monetary Policy
| Autor: | Jane E. Ihrig, Gretchen C. Weinbach, Zeynep Senyuz |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
050210 logistics & transportation
Stylized fact 021103 operations research media_common.quotation_subject 05 social sciences Monetary policy Control (management) 0211 other engineering and technologies 02 engineering and technology Monetary economics Interest rate Open market operation 0502 economics and business Economics media_common |
| Zdroj: | Finance and Economics Discussion Series. 2020 |
| ISSN: | 1936-2854 |
| DOI: | 10.17016/feds.2020.022 |
| Popis: | We describe the Federal Reserve’s (the Fed’s) approach to implementing monetary policy in an ample-reserves regime. We use a stylized model to explain the factors the Fed considers and the tools it uses to ensure interest rate control when the quantity of reserves is ample. Then, we take a close look at the Fed’s experience operating in this regime in the post-crisis period, both as it has raised and lowered its policy rate. Looking ahead, we highlight some considerations relevant for maintaining a level of reserves consistent with the efficient and effective implementation of monetary policy, and conclude with an overview of the benefits of an ample-reserves regime. This primer is intended to enhance discussions and understanding of the Fed’s actions and communications regarding monetary policy implementation, as many resources on this topic may be out of date given the recent evolution of the policy environment. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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