What is monetary policy?
Presentation of conventional monetary policy and quantitative easing. The presentation also includes a (brief) history of the monetary policies of some major central banks: European Central Bank, Fed Reserve System, Bank of England and, Bank of Japan.
Role of Monetary Policy and Central Banking in Combating Inflation Andishga...Amir Fassihi
Andishkadeh of Economics
Saeed Abtahi, DBA
Sunday October 13th, 2013 (4pm-7pm)
UCLA (Neuroscience Research Building)
635 Charles E Young Dr
Andishgah Lecture Series
The Role of Central Bank and Monetary Policy in Iran
The Iranian economy is in dire shape, with inflation running rampant as a direct consequence of the previous administration’s flawed economic policies. It is generally accepted that taming inflation requires a strong, transparent, independent and accountable central bank that has at its disposal the appropriate financial instruments to transmit monetary policy.
This presentation will:
v Address the current practices of monetary policy and central banking in Iran; and
v Provide a number of recommendations that Iranian authorities should consider to prevent Iran’s economy from edging toward disastrous hyperinflation.
Saeed Abtahi, DBA is an international investment banker, with 33 years of working experience in Europe, U.S., and the Middle East advising multi-national corporations, banks, government agencies and sovereign wealth funds in capital markets, corporate finance, asset management and strategic advisory works.
He is a resident of Los Angeles and consults his clients in California, Kuwait, and Abu Dhabi.
Saeed Abtahi earned his B.S. in Electrical Engineering and M.S. in Operation Research from Massachusetts Institute of Technology, and DBA in Finance from Harvard Business School.
This describes the Philippine Monetary Policy. This slideshow contains a brief history of the Philippine Monetary System and of the Bangko Sentral ng Pilipinas. This also contains the functions of money and how the BSP uses it to the Philippines' advantage.
Roger gomes monetary policies-its objective , meaning and defenitionRoger Gomes
A presentation done as a part of the course industrial Economics and Telecom Regulation during Semester 6 of the 4 year under graduate degree course in engineering
This presentation describes all the aspects related to the Monetary policies adopted by the Reserve bank of India(RBI)
Role of Monetary Policy and Central Banking in Combating Inflation Andishga...Amir Fassihi
Andishkadeh of Economics
Saeed Abtahi, DBA
Sunday October 13th, 2013 (4pm-7pm)
UCLA (Neuroscience Research Building)
635 Charles E Young Dr
Andishgah Lecture Series
The Role of Central Bank and Monetary Policy in Iran
The Iranian economy is in dire shape, with inflation running rampant as a direct consequence of the previous administration’s flawed economic policies. It is generally accepted that taming inflation requires a strong, transparent, independent and accountable central bank that has at its disposal the appropriate financial instruments to transmit monetary policy.
This presentation will:
v Address the current practices of monetary policy and central banking in Iran; and
v Provide a number of recommendations that Iranian authorities should consider to prevent Iran’s economy from edging toward disastrous hyperinflation.
Saeed Abtahi, DBA is an international investment banker, with 33 years of working experience in Europe, U.S., and the Middle East advising multi-national corporations, banks, government agencies and sovereign wealth funds in capital markets, corporate finance, asset management and strategic advisory works.
He is a resident of Los Angeles and consults his clients in California, Kuwait, and Abu Dhabi.
Saeed Abtahi earned his B.S. in Electrical Engineering and M.S. in Operation Research from Massachusetts Institute of Technology, and DBA in Finance from Harvard Business School.
This describes the Philippine Monetary Policy. This slideshow contains a brief history of the Philippine Monetary System and of the Bangko Sentral ng Pilipinas. This also contains the functions of money and how the BSP uses it to the Philippines' advantage.
Roger gomes monetary policies-its objective , meaning and defenitionRoger Gomes
A presentation done as a part of the course industrial Economics and Telecom Regulation during Semester 6 of the 4 year under graduate degree course in engineering
This presentation describes all the aspects related to the Monetary policies adopted by the Reserve bank of India(RBI)
Lekcija "Pasaules tautsaimniecības attīstības tendences un tuvākās nākotnes p...Latvijas Banka
Pasaules ekonomikas un lielāko pasaules valstu ekonomiku attīstības prognozes, balstoties uz jaunāko Starptautiskā Valūtas fonda veikto analīzi. Aktuālie jautājumi un būtiskākie riski ekonomikas attīstībai. Ieteikumi politikas veidotājiem.
Prezentācija izmantota lekcijā Ventspils augstskolā 2014. gada 4. novembrī.
This presentation explains various monetary instruments being adopted by the Reserve Bank of India. It also shows their impact on stock market. It also show the statistic trend of inflation, repo rate, reverse repo rate, etc in India.
Similar to Monetary policy: monetary orthodoxy or quantitative easing? (20)
Introduction à la gestion du risque de change.: définition du risque, régimes de changes, crises de change, définition et mise en pratique des solutions de couverture
Introduction à la gestion des risques en finance : définition du risque, typologie des risques, principales mesures du risque, définition de la couverture et instruments de couverture
During the 1980s, the liberalization of financial markets was supported by an intellectual framework provided by academic studies focused on the efficient market hypothesis. From the 1990s and more over the 2000s, the succession of financial crises motivated a growing questioning on this theoretical framework unable to explain bubbles and crashes. Today, let's review the theories dealing with the behavior of financial markets.
Analyse de la performance financière avec RJérémy Morvan
Introduction à l'analyse de la performance financière des actifs cotés. Après un rappel de la définition de la performance en finance, l'intervention est centrée sur l'analyse statistique sous le langage de programmation R.
Available in English as soon as possible!
Présentation de l'investissement socialement responsable
1. Définition de la responsabilité sociale de l'entreprise
2. Définition de l'investissement socialement responsable
3. Performance(s) de l'investissement socialement responsable
Introduction à la politique monétaire
Présentation de la politique monétaire conventionnelle et de l'assouplissement quantitatif (quantitative easing).
La présentation reprend également un historique des politiques monétaires de certaines des principales banques centrales : Banque Centrale Européenne, Fed Reserve System, Bank of England, Bank of Japan.
Un siècle d'évolution des marchés financiers (1914 2015)Jérémy Morvan
Introduction à l'histoire des marchés financiers (1914-2015)
La présentation insiste sur l'importance des éléments qui constituent le risque systématique : contexte géopolitique, innovation, croissance, pétrole, réglementation
Partie II - Strategie et gouvernance universitairesJérémy Morvan
Introduction à la stratégie et à la gouvernance universitaire
- Connaitre les fondamentaux du diagnostic stratégique
- Définir un plan stratégique
- Connaitre les modalités d’application du plan stratégique
Partie I - L'université et sa gouvernanceJérémy Morvan
Introduction au système universitaire français
- positionner l'université dans son environnement institutionnel
- Connaître les grands agrégats de gestion des universités
- Connaître la composition et le fonctionnement des conseils de l'université
Partie III - Gestion opérationnelle universitaireJérémy Morvan
Introduction à la gestion opérationnelle d'une composante universitaire
- Connaître les principaux acteurs de la gestion financière de l’établissement
- Comprendre les droits et obligations des ordonnateurs
- Comprendre la construction et l’exécution budgétaire
- Connaître les catégories de personnels
- Comprendre les enjeux de la gestion de la masse salariale
La direction d'une composante universitaire en FranceJérémy Morvan
Introduction à la direction d'une composante universitaire en France.
Le support présente les principaux éléments juridiques, organisationnels et financiers rencontrés lors d'un mandat de direction d'une composante.
Le support peut faire l'objet d'améliorations en s'élargissant à certaines structures (ESPE par exemple), à certains outils (Cocktail) ou selon l'évolution de la législation.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
2. Introduction
• To manage a bond portfolio, a fund manager has to anticipate changes in
interest rates
• The credit market is the largest financial market (money market + sovereign &
corporate bond market)
• To anticipate interest rates, it is necessary to capture the main variables involved
in the formation of interest rates
• Expected inflation (𝐶𝑃𝐼)
• Expected growth (𝑌)
• …
• Central banks are major players on money markets
• How do central banks act?
• What are the goals of central banks?
• What is quantitative easing?
4. Monetary policy
• Definition
4
The central bank's interventions in the money market and with financial institutions aimed at
achieving price stability and/or economic growth objectives
For the ECB, The first objective is to control inflation at the level of 2% per annum
5. Monetary policy
• Definition
5
Higher
interest rates
Lower demand
Lower inflationary
pressures
Lower
interest rates
Higher demand
Higher inflationary
pressures
The main function of a central bank is to control the money supply (monetary policy) in order to
guarantee price stability by controlling inflation.
By playing credit terms, the central bank influences the inflation rate
6. Monetary policy
• Definition
6
The goal is to influence the money market
→ The announcement of an intervention may suffice
Refinancing operations are punctual, announced, reduced
→ The amounts are limited not to disturb money market
Influence
Intervention
Taux courts
Short market rates are the target
Monetary policy has an inertia of 12-24 months
7. Monetary policy
• Three pillars of the ECB monetary policy
7
Operations by a central bank to give (or take) liquidity in its currency
to (or from) banks
Open market
operations
Marginal lending facility : to obtain overnight liquidity from the central bank, against
the presentation of eligible assets;
Deposit facility : to make overnight deposits with the central bank
Standing
facilities
Euro area banks are required to hold an amount of funds as
reserves in their current accounts at their national central bank
Minimum reserve
requirements
8. Monetary policy
• Open market operations by the ECB
8
One-week liquidity-providing operations in euro with
guarantee
Main refinancing
operations
Main ECB’s
key rate
Three-month liquidity-providing operations in euro with
guarantee
Long term
refinancing
operations
Refinancing operations in order to smooth unexpected
liquidity variations
Fine-tuning
operations
Refinancing operations in order to adjust the euro banking
system's liquidity position
Structural
operations
Frequency
9. Monetary policy
• Standing facilities
9
The deposit facility rate defines the interest banks receive for depositing
money with the central bank overnight
Floor rate
of the money market
Marginal lending
facility
The marginal lending rate is the rate payed by banks that receive
overnight credit from a national central bank against eligible assets
Ceiling rate
of the money market
Deposit facility
10. Monetary policy
• Minimum reserve requirements
10
The central bank requires credit institutions to hold deposits on accounts with their
national central bank
Very low interest rate
(0,05%)
Bank balance sheet security Creation of a liquidity deficit that requires
banks to refinance with the ECB
Reserve
requirements
12. Monetary policy
• Assessment
12
Strenghts Limitations
Growth is not
(always) a primary
objective
Debt market
development
Exceptional
market
circumstances
Strengh economic
growth
Inflation control
Normal market
conditions
14. Unconventional monetary policy
• Quantitative easing
• QE is an unconventional monetary policy in response to the limits of monetary policy
under exceptional market conditions
14
Key rate cut > 50 bp
Multiple key rate cuts
Very large refinancing volume
Lower quality of eligible assets
Risk of deflation
Major economic crises
Collapse
of the banking sector
15. Unconventional monetary policy
• Definition
15
Quantitative easing (QE) is a monetary policy in which a central bank purchases government and/or
corporate securities directly from the market in order to lower interest rates and increase the money
supply
The central bank purchases
financial assets
The financial volume is much larger than for
conventional monetary policy
17. Unconventional monetary policy
17
• Operations by the ECB
Fixed rate full allowment
Fixed-rate refinancing operations with an expanded list of
assets eligible as collateral in Eurosystem credit operations
Liquidity
injection in euro
and foreign
currencies
Several securities purchase programmes (SMP, OMT,
CBBP, ABS PP)
Negative deposit rate
Incentives for banks to provide more loans
Very LTRO and Targeted LTRO
Refinancing operations with a maturiy of 36 months
from dec. 2011 to feb. 2012 (amount > 1000 GEUR)
18. Unconventional monetary policy
• ECB’s asset purchase programmes
18
Interventions by the Eurosystem in sovereign and corporate debt securities
markets in the euro zone to ensure depth and liquidity in those market
segments (amount : 210 GEUR from may 2010 to dec. 2012)
Securities market
programme (SMP)
Failure due to a limited
refinancing volume
On July 26, 2012, Mario Draghi (chairman of the ECB) announces that
the ECB will repurchase all the sovereign debt of the euro area if
necessary
Pressure on the most exposed
sovereign debts lifted (Spain and Italy)
19. Unconventional monetary policy
• ECB’s asset purchase programmes
19
The ECB buys assets directly
to give cash to the banks
Outright Monetary
Transactions
(OMT)
Target: euro sovereign bonds with a maturity of 1 to 3 years with a pari
passu clause on an unlimited amount
Expanded asset
purchase programme
(2015-2016)
Target: corporate bonds (third covered bond purchase programme
(CBPP3) and asset-backed securities purchase programme
(ABSPP)
Public sector
purchase programme
(PSPP)
Target: sovereign debt of the euro area and international
organizations and development banks in the euro area
21. Unconventional monetary policy
• The growth does not only depend on low interest rates
• Unemployment, optimism, international trade…
• Deflationary context
• Lower global growth (BRIC)
• Lower oil prices (BRIC...)
• The QE does not create inflation because the cash does not circulate in the
economy
• Banks have few opportunities in a depressed economic environment and prefer
to put money at negative rates
• The ECB tries to lower the euro
• Toward a currency war?
21
23. Money market rates
• In the euro area
• The Main Refinancing Operations (MRO) rate is the main ECB’s key rate
• Two money market indices
• Euro Overnight Index Average (EONIA) is the weighted average of all overnight unsecured
lending transactions in the euro interbank market
• Euro Interbank offered rate (E3M) is the averaged interest rates at which Eurozone banks
offer to lend unsecured funds to other banks with a maturity of 3 months
• A money market with a low exposure to the currency risk
• Non-European operators testing the institutional resistance of the ECB
25. Money market rates
• In the United States
• The effective federal funds rate (EFFR) is calculated as a volume-weighted
median of overnight domestic unsecured borrowings in U.S. dollars by depository
banks
• The Fed conducts open market operations so that the EFFR reaches more or less
that Fed funds target rate
• A major money market is the US
• First political power
• First economic power
• USD is the main currency
26. 0
2
4
6
8
10
12
Evolution of the effective Fed funds rate and the Fed funds target rate
Fed funds target rate Effective Fed funds rate
End of the
Reaganomics
Clinton’s economic
recovery plan
Internet bubble
Russian financial
crisis (sept)
11 september
attacks
Imported inflation
(rise of the BRIC countries) Subprime crisis
Internet crash
Deflation risk
28. Money market rates
• In Great Britain
• The base rate is the rate that the Bank of England charges banks and financial
institutions for overnight credit
• Two interbank rates
• As the EURIBOR for the euro, the LIBOR are interbank offered rates in GBP
• LIBOR1D is an overnight rate
• LIBOR3M is a rate for interbank loans in GBP with a maturity of three months
• A specific history due to an evolution strongly bound to the global banking sector
29. 0,000
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000 Comparative evolution of the LIBOR1D, LIBOR3M and the BoEBR
BOEBR LIBOR1D LIBOR3M
Lower inflation:
easing of rates British government is forced to
withdraw the GBP from the
European Exchange Rate
Mechanism (ERM)
Soros' Quantum Fund began
a massive sell-off of pounds
(15 sept.)
Creation of the
LIBOR (jan.)
Imported inflation (rise
of the BRIC)
Subprime crisis
Outbreak of the
crisis (aug.)
Bankruptcy of Lehman
Brothers (sept)
Internet Bubble
Russian financial crisis
Deflation risk
30. Money market rates
• In Japan
• The basic loan rate is the standing facility rate for refinancing operations with
the Bank of Japan in JPY with a maturity of 1 day (no collateral is needed for
these overnight loans)
• The call rate is an overnight interbank rate
• A money market with a string link with
• The yen/US-dollar exchange rate
• The oil price (imports) and the global economic growth (exports)
• A market with low rates since the bursting of the housing bubble in 1993
32. Conclusion
“If I turn out to be particularly clear, you've probably
misunderstood what I've said.” (Alan Greenspan)
33. Conclusion
• In long time, monetary policies change
• Monetary policies are increasingly linked
• The stance of central banks changes: the position of the central bank may be
political (before the independence of central banks), monetary (under normal
market conditions), insurance (lender of last resort or buyer of last resort)
• The means of action change
• Speech
• Increasing refinancing volume (with or without collateral)
• Erratic variation of the intervention rate (50 bp and more… or 0 bp)
• Negative key rate
• Central banks’ purchases
34. Conclusion
• In long time, monetary policies change
• Their goals change
Monetary
policy
CPI
Economic
growth
Exchange
rate
35. References
Books & papers
Bernanke Ben S. (2015), The Courage to Act, W.W. Norton & Company, 610 pp.
Clarida Richard, Gali Jordi, Gertler Mark (2000), "Monetary Policy Rules and Macroeconomics Stability: Evidence
and Some Theory", Quarterly Journal of Economics, (115)1, 147-180
Greenspan Alan (2007), The Age of Turbulence, Penguin, London, 531 pp.
Hetzel Robert L. (2002), "German Monetary History in the Second Half of the Twentieth Century: From the Deutsche
Mark to the Euro", Federal Reserve Bank of Richmond Economic Quarterly, (88)2, 29-64
Reinhart, Carmen M., Rogoff Kenneth S. (2013), "Shifting mandates: The Federal Reserve’s first centennial ",
American Economic Review, 103(3), 48-54
Reischauer Edwin O. (1970), Japan, the story of a nation, Knopf, New York, 448 pp.
Web sites
www.bankofengland.co.uk
www.boj.or.jp
www.ecb.europa.eu
www.federalreserve.gov