IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-60730-9_16.html
   My bibliography  Save this book chapter

Alternative Central Bank Policies

In: The World Economy, Population Growth, and the Global Ecosystem

Author

Listed:
  • Harland Wm. Whitmore

Abstract

A central bank may allow the interest rate in its country to vary, managing instead its monetary base through occasional open market operations, or it may allow its monetary base to vary, managing instead the country’s interest rate through continual adjustments in its holdings of domestic bonds. In addition, a central bank may allow the value of another country’s unit of account to fluctuate relative to its own unit of account, by adjusting its holdings of foreign bonds arbitrarily and occasionally without trying to maintain a particular exchange rate; or it may decide to manage the exchange rate between its unit of account and that of another country by continually buying and selling foreign bonds. Whether the central bank occasionally or continually trades foreign bonds, it may finance those trades either by allowing its monetary base to change or by sterilizing potential effects upon its monetary base by altering as well its holdings of domestic bonds in the direction opposite to its change in foreign bond holdings.

Suggested Citation

  • Harland Wm. Whitmore, 2007. "Alternative Central Bank Policies," Palgrave Macmillan Books, in: The World Economy, Population Growth, and the Global Ecosystem, chapter 16, pages 289-305, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-60730-9_16
    DOI: 10.1057/9780230607309_16
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-60730-9_16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.