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Monetary Policy Design and Implementation

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 A Global Perspective on Money and Monetary Policy: From A to Z and everyone in between 

Whether it is having been with the IMF working on the fiscal accounts  in Buenos Aires in May 1989 when inflation was 198 percent that month alone; in Azerbaijan with the first team to arrive after the dissolution of the Soviet Union; supervising advisory work in Zimbabwe and Zambia; or travelling to Seoul and New York during the current crisis…while we may not have seen it all we probably have come closer than anyone else in the market to having a truly global perspective on the essentials of monetary policy and its implementation.


Interested in understanding the essential differences between inflation targeting, price level targeting, and the gold standard? Curious about the differences between the ways fixed exchange rates and currency boards constrain monetary policy? Wonder how Greece cut its money supply literally in half after the First World War? Trying to figure out how, when and why the Federal Reserve will exit? You’ve come to the right place.


While we do believe our cross country experience with monetary policy is a rare commodity in today’s market, many academics have a good handle on the essentials of modern monetary policy design. Where they are lacking and where our background is exceptionally strong is in monetary policy implementation. Monetary policy implementation is like plumbing. As long as it is working, no one, apart from plumbers, spends any time thinking about how it works. Once it is broken, though, it quickly attracts a lot of attention. And, as you may know, amateur plumbers can do a lot of damage, particularly when they are overconfident. Having central bank operational experience provides one with a correct, and sometimes completely different understanding of the mechanics of monetary policy than is found commonly in academia and, surprisingly, even on central bank boards. A correct understanding of the plumbing of implementation is essential for understanding the hows, whys and whens of QE exit.


Is “credit easing” really different from “quantitative easing”? Why you should forget everything you ever learned about the money multiplier and the role of bank reserves in credit creation. What relevance does the Norges Bank operational target have for the Federal Reserve going forward? How have the approaches of the UK, US and Norway toward supporting the mortgage backed securities market differed and does it matter? Is Federal Reserve policy “pouring” liquidity into emerging markets or is this a mistaken simile?

Deflation, Hyperinflation: we have them covered

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