Second MIT Press paperback edition, 1999

The future of central banking:

provide a nominal anchor for monetary policy, while allowing the central bank some flexibility to help stabilize the real economy in the short run. The inflation-targeting approach gives a specific answer to the question of how central bankers should respond to asset prices: Changes in asset prices should

* Currently European Central Bank. Research completed while at Bank of England.

The Reaction of central banks to Stock Markets

concerning certain statistical reporting requirements of the European Central Bank and the procedures for reporting by the national central banks of statistical information in the field of money and banking statistics

How quickly do central bank intervention operations impact the foreign exchange market? And, do intradaily market conditions influence the effectiveness of central bank interventions? This paper uses high-frequency intradaily data to examine the relationship between the efficacy of intervention

This paper discusses the challenging question of whether central banks should use treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that treasury bills

of the IMF. The views expressed in this Note are those of the authors and do not necessarily represent those of the IMF or IMF policy. JEL Classification Numbers: Keywords:

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