Central banks have three principal tools of unconventional monetary policy: a. Forward guidance: communication regarding expected future

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Central banks have three principal tools of unconventional monetary policy:

a. Forward guidance: communication regarding expected future policy target rates.

b. Quantitative easing: supplying aggregate reserves beyond the quantity needed to lower the policy rate to the target.

c. Targeted asset purchases: changing the mix of assets at the central bank to alter their relative market prices.

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Money Banking And Financial Markets

ISBN: 9781260226782

6th Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Question Posted: Mar 21, 2024 05:42 AM

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Central banks have three principal tools of unconventional monetary policy: a. Forward guidance: communication regarding expected future

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Money Banking And Financial Markets

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