accommodatory monetary policy
A policy of allowing the supply of money to expand in line with the demand for it. If the demand for money rises because of sustainable real growth in the economy, accommodatory monetary policy is ...
asset-based monetary aggregate
A measure of money supply based not on notes and coins but on the price behaviour of certain assets, such as property prices, exchange rates, and other securities. The intent ...
Bank of England
The central bank of the UK. It was established in 1694 as a private bank by London merchants in order to lend money to the state and to deal with the national debt. It came under public ownership in ...
Bank of Japan
The Japanese central bank, which controls monetary policy but does not regulate Japanese banks.
broad money
A relatively broad definition of money. This applies to definitions such as M2, which includes building society deposits, or M3, which includes interest-bearing bank deposits. It does not apply to M0 ...
corset
1 A restriction of the movements of currency exchange values imposed by certain formal market mechanisms.2 A government restriction on the growth of bank deposits and thus indirectly on bank lending ...
deflation
The situation in which there is a general decrease in prices, especially when this is accompanied by falling levels of output, employment, and trade. Because of these associations, advocates of ...
desk
(USA).The name given to the New York Federal Reserve Bank's trading operations; it is the operating arm of the Federal Open Market Committee (FOMC). The desk carries out all ...
divisia money
A method for calculating money supply using an aggregate of all monetary aggregates weighted by the degree of liquidity. Therefore, changes in M0, for example, would count for more in ...
fine tuning
The effort to make precise adjustments in the level of activity via fiscal and monetary policies. Efforts at fine tuning are hampered by lags and minor inaccuracies in the data on which policies are ...
Goodhart's law
Originally, an economic theory stating that if a particular definition of the money supply were to be used as the basis for monetary policy, the stability of its statistical relationship with ...
interest-rate policy
A policy in which governments or central banks set interest rates is an attempt to influence the money supply. Higher rates of interest will reduce the demand for money, giving a downward impetus to ...
lender of last resort
A country's central bank with responsibility for controlling its banking system. In the UK, the Bank of England fulfils this role, lending to discount houses, either by repurchasing Treasury bills, ...
liquidity
The extent to which an organization's assets are liquid (see liquid assets), enabling it to pay its debts when they fall due and also to move into new investment opportunities.
macroeconomics
The macro aspects of economics, concerning the determination of aggregate quantities in the economy. Macroeconomics considers what determines total employment and production, consumption, investment ...
monetary base
This attempts to measure the liabilities of the central bank to the public and the bank system, and as such can represent the basis upon which to direct monetary policy.[...]
monetary control
The deliberate management of the money supply by a central bank or other authority, usually as a means of maintaining price stability.
monetary inflation
The artificial expansion of the money supply. In monetarism and related economic approaches, monetray inflation is seen as the direct cause of price inflation. See quantity theory of money.
monetary policy
Those instruments, such as interest rates, reserve requirements, and term controls, at the disposal of government for influencing the timing, availability, and cost of money and credit in an economy ...
