Browsing by Subject "monetary policy strategy"

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  • Rehn, Olli (2019)
    Bank of Finland Bulletin. Blog
    Conducting monetary policy in the current low inflation and low interest rate environment is a case apart, unlike the ‘old normal’. The Bank of Finland organized an international research conference to discuss this dilemma, and two key topics in particular: the challenges of monetary policy and the future of European Monetary Union.
  • Välimäki, Tuomas (2021)
    Bank of Finland Bulletin. Blog
    The symmetry of the guideline for the monetary policy stance has recently attracted considerable attention in central banks’ communications. Both the Fed and the ECB have, in their recent strategy reviews, laid out that their preferences are symmetric about the inflation target of 2%. Indeed, the calibration of the inflation target was a key part of the ECB’s strategy review that was published in July.
  • Kilponen, Juha; Kontulainen, Jarmo (2021)
    Bank of Finland. Bulletin 4/2021
    The ECB’s revised monetary policy strategy has now been adopted. The new 2% inflation target is clear and unambiguous. The target is symmetric, meaning both negative and positive deviations of inflation from the target are considered as equally undesirable. Commitment to the symmetric inflation target requires especially forceful or persistent monetary policy measures when interest rates are close to their effective lower bound. This may imply a transitory period in which inflation is moderately above target. A medium-term orientation with the inflation target also allows the ECB to emphasise sustainable growth and full employment in its decision-making. In its monetary policy, the ECB also takes into account environmental sustainability, in line with the new climate-related action plan.
  • Rehn, Olli (2020)
    Bank of Finland. Bulletin 5/2020
    The lockdown measures introduced to contain the global health crisis posed by the coronavirus pandemic led to a sharp contraction in economic activity during the second quarter of 2020. The world economy has already entered a fragile recovery, but one that will take a long time.
  • Rehn, Olli (2021)
    Bank of Finland. Bulletin 4/2021
    Growth in the euro area economy is expected to be brisk this year and in 2022 as economies are opened up, strong support is provided by economic policies and the global economy recovers. The rebound from an exceptionally severe and sudden crisis has been quick. The COVID-19 pandemic is not over yet though, and the spread of the Delta variant appears to have dampened the upward economic trend over the summer. But in developed economies with a high vaccination coverage the impact is not expected to be prolonged or of great significance.
  • Kortela, Tomi (2019)
    Bank of Finland. Bulletin 1/2019
    Monetary policy strategy specifies the key principles that a central bank adheres to in pursuit of its objective. The primary objective of the ECB is to maintain price stability. Central banks’ operating environment has changed on the back of the protracted financial and debt crisis, population ageing and the low level of interest rates. New monetary policy instruments have been introduced. Research on monetary policy tools and the effectiveness of the measures implemented has increased. Changes in the operating environment and increased economic knowledge challenge central banks to review their monetary policy strategies.
  • Rehn, Olli (2020)
    Bank of Finland Bulletin. Blog
    The ECB is currently reviewing its monetary policy strategy. The work will continue and is due to be completed by September 2021. The Covid-19 pandemic first caused a delay in the schedule, but its more fundamental impact has been to add exceptional timeliness to the challenges of the exercise.
  • McClung, Nigel (2021)
    Bank of Finland Bulletin. Blog
    As a part of their recent monetary policy strategy review, the ECB set up a workstream for the purpose of reviewing interactions between monetary and fiscal authorities in the euro area. The findings of this workstream were published in the form of an Occasional Paper on 21 September.