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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Capitolo 9
L’Offerta di Moneta e la Politica Monetaria
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Instruments, Targets, andObjectives in Monetary Policy
Fig. 9.01
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Fig. 9.01
Instruments
• Bank refinancing rates (repo and discount rates)
• Monetary base control using open market purchases and sales
• Required reserve ratios
Targets
• Long-term market interest rates
• Monetary aggregates (M1, M2, M3…)
• Exchange rates
• Inflation rates
Objectives
• Price stability (primary objective)
• Short-term growth (secondary)
• Exchange rate stability (secondary)
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Monetary policy procedures
Fig. 9.02
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Monetary policy procedures
(a) Money targeting (b) Interest rate targeting
Nominal money
Inte
rest
rat
e
Inte
rest
rat
eNominal money
Supply
Supply
DemandDemand
Interest rate is now endogenous
Quantity of nominal money is now endogenous.
Fig. 9.02
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Table 9.01
Assets Liabilities
Gold and foreign reserves 310.1 Currency in circulation 435.4
Claims on governments 42.6 Reserves held by commercial banks 133.6
Claims on banks and financial institutions 295.1 Government deposits 62.1
Other assets 205.7 Other liabilities 20.4
Net worth 202.0
Total 853.5 Total 853.5
Source: ECB Monthly Bulletin, May 2004, Table 1.1.
Consolidated balance sheet of the Eurosystem30 April 2004
(€ billions)
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Where’sM0?
Foreign assets
Loans to comm. banks
Claims on governments
Reserves of commercial
banks
Bank notes held by nonbanks
Deposits of government
Net worth Deposits of
private sector
Deposits of government
Real assets, incl. net worth of
banking sector
Government and private debt
Net worth
Vault cash and reserves at
Central Bank
Loans and securities
Liabilities to Central Bank
Deposits of private sector
Net worth
Bank notes held by nonbanks
Central BankConsolidated Government
and Nonbank Private Sector
Commercial Banks
Assets Liabilities
Assets Liabilities
Assets Liabilities
Fig. 9.03
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Reserves-money stock link
Reserves
Deposits
change in reserves
change indeposits
Fig. 9.04
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
♦ Base monetaria = M0 = CU + R
♦ CU = ccM1 e R = rrD
♦ Moneta = M1 = CU + D = ccM1 + D ♦ D = (1-cc)M1 che sostituito in M0 ♦ M0 = [cc + rr(1-cc)]M1 ♦ M1/M0 = 1/ [cc + rr(1-cc)] = mm
♦ dmm/drr = -(1-cc)/([cc + rr(1-cc)])2<0
♦ dmm/dcc = -(1-rr)/([cc + rr(1-cc)])2<0
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Table 9.02
M0 M2 Multiplier Currency (% of GDP) (% of GDP) M2/M0 (% of M2) Eurozone 7.2 72.3 10.1 7.4 UK 4.6 89.1 19.4 3.6 USA 6.8 58.3 8.6 10.7 Japan 20.2 135.6 6.7 11.0
M0, M2, money market multipliers, and currency2003
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Theoretical values of the money multiplier (M1/M0)
Table 9.03
Currency/M1 5% 10% 20%
0% 20.0 10.0 5.0 5% 10.3 6.9 4.2
10% 6.9 5.3 3.6 20% 4.2 3.6 2.8 30% 3.0 2.7 2.3
Reserve ratio = rr
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
The money market
Fig. 9.06
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Derived demand for monetary base
Nominal money
Inte
rest
rat
e
0
D
, ,0d P Y i cM
Mm m
L
Ceteris paribus
Fig. 9.06
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
The supply of the monetary base controlled by the central bank
Inte
rest
rat
e
0
D
0sM
Fig. 9.06
Nominal money
A
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
If the central bank does not respond to an increase in the demand for monetary base...
Inte
rest
rat
e
0
D D
0sMB
Fig. 9.06
Nominal money
A
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
If the central bank instead wishes to hold interest rates constant...
Inte
rest
rat
e
0
D D
0sM 0sM
Fig. 9.06
Nominal money
CA
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Actually the central bank can choose any point along the new demand for monetary base
Inte
rest
rat
e
0
D
A
D
B
C
Fig. 9.06
Nominal money
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Fig. 9.07
0
1
2
3
4
5
6
7
Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04
Marginal Lending Facility
EONIA
Main refinancing rate
Deposit facility
ECB interest rates
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Fig. 9.08
The Bank of England’s Inflation Forecast:The Fan, 2004-06
(Percentage increase in prices on a year earlier)
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Foreign exchange market interventionand sterilization
Foreign exchange Monetary base-80,000,000 -80,000,000
Danmarks Nationalbank
Assets Liabilities
Foreign exchange Monetary base-80,000,000 (no change)
Government bonds80,000,000
Danmarks Nationalbank
Assets Liabilities
Fig. 9.09
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Seigniorage around the world
Source: Masson, Savastano and Sahrma (1998)
Table 9.04
1980 91 1992-95 1980 91 1992-95
Advanced Economies 0.8 0.3 7.2 3.3 US 0.4 0.4 5.4 2.8 Germany 0.5 0.3 2.9 3.5 Japan 0.6 0.3 2.6 0.9
Hungary 0.4 4.1 12.7 23.1 Poland 7.0 2.2 99.5 34.6 Israel 1.9 0.5 111.1 11.3
Africa 1.4 1.3 19.6 22.2 Asia 1.5 2.0 7.6 7.1 Latin America 3.2 2.4 251.4 110.1
Seigniorage Inflation
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA Table 9.05
Country Coverage of deposits (in euros) Austria 20 000 Belgium 20 000
Denmark 40 330 1 Finland 25 000 France 60 000 Germany 90% up to ceiling 20 000 Greece 20 000 Ireland 90% up to ceiling 20 000 Island 20 000 Italy 103 000 Netherlands 20 000
Norway 235 000 1 Portugal 25 000 Sweden 28 000 Spain 20 000
UK 90% up to ceiling 47 900 1 1 National currency value converted into € using the exchange rate in July 2004 Source: ECB, International Association of Deposit Insurers
Deposit insurance in Europe
2004
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Burda, Wyplosz MACROECONOMIA: UNA PROSPETTIVA EUROPEA
Reserve and capital adequacy ratios
Assets Liabilities
Central bank reserves Deposits
Net worthLoans and securities Tier 1 (primary) capital
Tier 2 (secondary) capital
Typical Commercial Bank, SA
(1)
(2)
Fig. 9.10
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