Generic term for all measures aimed at adjusting the demand for money to the supply of money. – The central bank’s approach to pursuing this goal; more precisely: – to ensure the long-term stability of the money measure as the most important prerequisite for the prosperous course of modern social – not only economic – interactions, and – to ensure the smooth flow of payments. – social interaction) in the long run, as well as – to ensure the smooth flow of payments. Monetary policy works primarily through banks and through markets. – Monetary policy can be counteracted by fiscal policy; therefore, both policy areas must be coordinated. On the other hand, an emerging systemic risk, such as the subprime crisis and the financial crisis that followed it, can significantly hamper monetary policy and render the usual monetary transmission mechanism ineffective. – See activism, central bank policy, targeting, single-domain, banknote value constraint, code words, demographic solidification, key data, macroeconomic, Ecofin Council, Elizabeth question, hawk, money, moral, money market operations, money market segments, money market volatility, Credibility paradox, Equilibrium models, Dynamic stochastic, Budget deficit, Jackson Hole consensus, Cobra effect, Martin principle, Medium term, Models, Monetary policy, Nominal value principle, Open mouth policy, Signaling effect, Thrift rule. Public debt pressure, Stability and Growth Pact, VAR model, fuzziness, constructive, constitutional article one, growth-debt fact, historical, payment system, central bank, central bank reputation, interest rate smoothing, interest rate channel, immigration, two-pillar principle. – Cf. ECB Monthly Bulletin, November 2001, pp. 59 ff, ECB Annual Report 2003, pp. 16 ff. (basic facts), ECB Monthly Report of November 2008 (ECB monetary policy and differences across member countries: four statements), Deutsche Bundesbank Monthly Report of January 2010, pp. 30 ff. (monetary policy targets: detailed presentation; overviews, literature references), ECB Monthly Report of May 2010, pp. 95 ff. (monetary policy transmission in the euro area; overviews; references), ECB Monthly Report of November 2010, pp. 91 ff. (improved instruments of monetary policy; many overviews; references), Deutsche Bundesbank Monthly Report of July 2011, pp. 69 ff. (summary of the results of a technical conference), ECB Monthly Report of January 2014, pp. 75 ff. (detailed presentation of liquidity management by the ECB; many overviews),
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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