the ultimate goal of monetary policy is to achieve price stability and high output. in this regard, central banks usually change the interest rate, liquidity, and money base in order to apply monetary policies. the john b. taylor rule is one of the rules known in the transmission of monetary policy.[1] based on this rule and given the output gap and inflation gap, the central bank increases or ...

At the end of 1999, the Swiss National Bank modified its monetary policy concept and abandoned monetary targeting in favor of an approach based on an inflation forecast. Although central bank money or the monetary base, the SNB's intermediate target variable, was plagued by instabilities, the switch to a new policy framework was motivated by more fundamental problems arising from monetary targe...

In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to the model where money creation can be achieved by bank loans and the monetary aggregate is determined by the monetary base and the required reserve ratio. I...

Allan Meltzer developed his model of the monetary transmission mechanism in research conducted with Karl Brunner. The Brunner-Meltzer model implies that the Federal Reserve would benefit from drawing brighter lines between monetary and fiscal policy actions, eschewing credit market intervention and focusing, instead, on using its control over the monetary base to stabilize the aggregate price l...

We test for fractional dynamics in U.S. monetary series, their various formulations and components, and velocity series. Using the spectral regression method, we find evidence of a fractional exponent in the differencing process of the monetary series (both simple-sum and Divisia indices), in their components (with the exception of demand deposits, savings deposits, overnight repurchase agreeme...

At the beginning of the year 2000, the Swiss National Bank (SNB) adapted its monetary policy strategy. Instead of using a medium-term target path for the monetary base, an inflation forecast now serves as the main indicator for monetary policy decisions. At the operational level, the SNB has adopted three-month Libor (London interbank offered rate) as its new reference interest rate, and the in...