Front Matter Page
Monetary and Exchange Affairs Department
Authorized for distribution by Piero Ugolini
Contents
I. Introduction
II. The Choice of the Operating Target
A. The Role of Operating Targets
B. Price versus Quantity Variables as Operating Targets
C. The Role of the Monetary Policy Strategy for the Choice of the Operating Target
D. Operating Targets and Policy Instruments
III. Impact on the Central Bank’s Balance Sheet
IV. The Role of Monetary Conditionality for Monetary Policy
V. Conclusions
References
Text Tables
1. Central Bank Balance Sheet
2. Summary Balance Sheet of a Central Bank
Box
1. Summary of Balance Sheet Movements under Different Monetary Policy Instruments
Appendices
I. Steering Operating Targets Under Uncertainty
II. Deriving NDA Ceilings in Fund-Supported Programs
Appendix Tables
1. Interest Rate versus Base Money as Operating Targets
2. Preferred Operating Target Under Alternative
3. Preferred Policy Instruments Under Alternative Operating Targets