Operationally, the Monetary
Board functions differently form a regular corporate board.
The case for ending unconventional monetary
policy and normalizing interest rates leads to a deeper issue--namely, how to shape institutions and incentives to achieve a harmonious system of money and banking.
Dietrich Domanski, from the Bank for International Settlements, examined how portfolio adjustments by long-term investors (insurers and pension funds) to contain mismatches in the duration of assets and liabilities may have amplified the effects of unconventional monetary
In this way, monetary
and credit policies were focused towards providing suitable credit to productive sectors in general and priority sectors in particular.
The BOJ also said its monetary
easing has been exerting its intended effects, showing its confidence that the country remains on track toward the price stability target.
Al-Saleh said that monetary
union members, notably Kuwait, Saudi Arabia, Qatar and Bahrain, have been involved in negotiations with the UAE and Oman to expand the union.
Madura and Schnusenberg (2000) investigate the reaction of bank equity returns to changes in monetary
They conclude that unanticipated changes in monetary
policy can meaningfully influence long-term interest rates but note that this relationship is hard to find with VARs because innovations to the federal funds rates in these models may not fully isolate "surprises" in monetary
These indices are shown to better gauge China's monetary
stance particularly in the early 2000s when market-based monetary
tools were less used, but become increasingly correlated with the interest rate, a market-, price based tool, in recent years.
In all events, Madison argued, it could not have waived Bentley's monetary
default because the lease contained a non-waiver provision.
This route is however not available to members of the euro monetary
zone, as there is a single monetary
policy applied to national economies with very different characteristics.
Voting for the FOMC monetary
policy action were: Alan Greenspan, Chairman; Timothy E Geithner, Vice Chairman; Susan S.