Introduction to Central Banking.

• Superior document: SpringerBriefs in Quantitative Finance Series
• Author: Bindseil, Ulrich.
• TeilnehmendeR: Fotia, Alessio.
• Place / Publishing House: Cham : : Springer International Publishing AG,, 2021.; ©2021.
• Year of Publication: 2021
• Edition: 1st ed.
• Language: English
• Series: SpringerBriefs in Quantitative Finance Series
• Physical Description: 1 online resource (145 pages)

Table of Contents

• Intro
• Acknowledgements
• About This Book
• Contents
• Abbreviations
• Symbols in Balance Sheets and Tables
• List of Figures
• List of Tables
• 1 Economic Accounts and Financial Systems
• 1.1 Real Economic Sectors and Basic Types of Transactions
• 1.2 The Financial Sector and Financial Transactions
• 1.2.1 Commodity Money, Financial Assets and IOU Economy
• 2 Central Banks
• 2.1 Central Banks in a Paper Standard
• 2.2 Changes to the Demand of Financial Assets in a Paper Standard
• 2.2.1 If Financial Sectors not Ready to Compensate Missing Demand for Securities
• 2.2.2 Commercial Banks Absorb Security Flow
• 2.2.3 The Central Bank Absorb Flows and Acts as Market Maker of Last Resort
• 2.3 Interbank Flows
• 2.4 Role of Commercial Banks in Money Creation
• 2.4.1 Credit Money Created by Banks
• 2.4.2 "Sovereign Money" and "Full Reserve Banking"
• 2.4.3 "Central Bank Digital Currency" (CBDC) Accessible to Non-Banks
• 3 Conventional Monetary Policy
• 3.1 Short-Term Interest Rates as the Operational Target of Monetary Policy
• 3.1.1 The Targets of Monetary Policy
• 3.1.2 The Basic Natural Rate Logic of Monetary Policy
• 3.1.3 Complicating the Basic Natural Rate Logic
• 3.1.4 Transmission Channels of Monetary Policy
• 3.2 Composition of the Central Bank Balance Sheet
• 3.2.1 Autonomous Factors
• 3.2.2 Monetary Policy Instruments
• 3.2.3 Liquidity Providing and Liquidity Absorbing Items
• 3.3 Monetary Policy Implementation Techniques
• 3.3.1 The Ceiling Approach
• 3.3.2 The Floor Approach
• 3.3.3 The Symmetric Corridor Approach
• 3.4 The Central Bank Collateral Framework
• 3.4.1 Why Collateral?
• 4 Unconventional Monetary Policy
• 4.1 Rationale and Definition of "Unconventional" Monetary Policy
• 4.2 Negative Interest Rate Policy (NIRP)
• 4.2.1 Reasons for a Lower Bound.
• 4.2.2 Criticism of the Negative Interest Rate Policy
• 4.3 Non-Conventional Credit Operations
• 4.4 Outright Purchase Programmes
• 4.5 Distinguishing Between Conventional, Non-Conventional, and LOLR Policies
• 5 Financial Instability
• 5.1 Liquidity, Asset Prices, and Default
• 5.2 Conditional and Unconditional Insolvency, and Bank Runs
• 5.3 Illiquidity in Credit and Dealer Markets
• 5.3.1 Credit Markets
• 5.3.2 Dealer Markets
• 5.4 Increasing Haircuts and Margin Calls
• 5.5 Interaction Between Crisis Channels
• 6 The Central Bank as Lender of Last Resort
• 6.1 Principles and Rationale for the Central Bank Acting as Lender of Last Resort
• 6.1.1 Origin and Principles of LOLR
• 6.1.2 Why Should Central Banks Be Lenders of Last Resort?
• 6.2 Forms and Propensity to Act as LOLR
• 6.2.1 Forms of LOLR
• 6.2.2 Overall Propensity of a Central Bank to Act as LOLR
• 6.3 Central Bank Collateral as a Key LOLR Parameter in a Simple Bank Run Model
• 6.3.1 A Bank Run Model with Binary Levels of Asset Liquidity
• 6.3.2 The Model with Continuous Asset Liquidity
• 6.4 Conclusions
• 7 International Monetary Frameworks
• 7.1 Why Do Fixed Exchange Rates Persist?
• 7.2 Past International Monetary Frameworks
• 7.2.1 The Gold Standard
• 7.2.2 The Bretton Woods System
• 7.3 International Monetary Frameworks of the Present
• 7.3.1 Fixed Exchange Rate System-Paper Standard
• 7.3.2 Flexible Exchange Rate Systems
• 7.3.3 The European Monetary Union
• 7.3.4 Foreign Reserves
• References.