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Monetary policy/Related Articles

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A list of Citizendium articles, and planned articles, about Monetary policy.
See also changes related to Monetary policy, or pages that link to Monetary policy or to this page or whose text contains "Monetary policy".

Contents

Index

See the related articles subpage to the article on economics [1] for an index to topics referred to in the economics articles.

Parent topics

  • Economics [r]: The analysis of the production, distribution, and consumption of goods and services. [e]
  • Macroeconomics [r]: The study of the behaviour of the principal economic aggregates, treating the national economy as an open system. [e]
  • Financial economics [r]: the economics of investment choices made by individuals and corporations, and their consequences for the economy, . [e]
  • Financial system [r]: The interactive system of organisations that serve as intermediaries between lenders and borrowers. [e]

Related topics

  • Fiscal policy [r]: Policy concerning public expenditure, taxation and borrowing and the provision of public goods and services, and their effects upon social conduct, the distribution of wealth and the level of economic activity. [e]
  • Banking [r]: the system of financial intermediation that provides the principle source of credit to individuals and companies. [e]
  • Deflation [r]: a persistent sequence of reductions in the general level of prices. [e]


Glossary

Five other glossaries are available:

see also the European Central Bank Glossary[2]


  • Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level. [e]
  • Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). [e]
  • Credit easing [r]: A method of making credit more available to individuals and businesses by changing the composition of the assets of the central bank towards less liquid and riskier private sector assets. Unlike quantitative easing, it may be done without expanding the money supply. [e]
  • Debt_instrument [r]: A formal obligation assumed by a borrower to replay the lender in accordance with the terms of an agreement, including bonds, debentures, promissory notes, leases and mortgages. [e]
  • Discount window [r]: A facility provided by central banks that enables a bank to make secured short-term loans at its central bank's discount rate. [e]
  • Federal funds rate [r]: The overnight interest rate at which banks lend balances at the Federal Reserve to other banks. [e]
  • Fiat money [r]: money whose value is determined solely by government order, or "fiat" (as distinct from commodity money that has value because of its scarcity or cost of production). [e]
  • Forex swap [r]: Simultaneous spot and forward transactions exchanging one currency against another. [e]
  • Interbank market [r]: a market in which a group of banks lend to each other (for example, see LIBOR). [e]
  • Leverage [r]: (i) The use of borrowing to increase the amount of money that is available for investment or consumption. (ii) A proportional measure of indebtedness, such as the ratio of a company's debt to its shareholders' equity (the same as British "gearing"), or the ratio of the indebtedness of a household to the net value of its assets (ie net of its debts). [e]
  • LIBOR [r]: (London Interbank Offer Rate) the rate of interest at which a group of banks (16 banks from seven countries, including the United States, Switzerland and Germany) are willing to lend to each other for periods ranging from a day to a year . [e]
  • Open market operations [r]: The purchase or sale of government bonds by a central bank in order to change commercial banks' reserve ratios with a view to the consequences for the money supply and interest rates. [e]
  • Price flexibility [r]: The property of a market in which prices act rapidly to bring supply into equality with demand (see supply and demand). [e]
  • Qualitative easing [r]: A shift in the composition of the assets of the central bank towards less liquid and riskier assets (in order to reduce credit [[spreads] and improve the functioning of private credit markets) - also known as credit easing. [e]
  • Quantitative easing [r]: An increase in the central bank's monetary liabilities as a result of its purchases of corporate or government securities. [e]
  • Repurchase agreement [r]: A contract giving the seller of an security the right or obligation to buy it back at a specified price on a given date. Used as a way of borrowing or lending using the security as collateral. (The interest rate charged is known as the "repo rate"). [e]
  • Repurchase operation [r]: A liquidity-providing reverse transaction based on a repurchase agreement. [e]
  • Sacrifice ratio [r]: The loss of output that results from policy action to reduce the inflation rate; defined as the loss of output per one percent fall in the inflation rate. [e]
  • Time inconsistency [r]: A concept that includes (i) the failure to carry out a previous undertaking (such as an unsuccessful threat or promise that was intended to influence the decisions of others); and, (ii) a change, due solely to the passage of time relative to the time of valuation, to the discount rate that is used to value a delayed cost or benefit. [e]
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