The Coevolution of Money Markets and Monetary Policy, 1815–2008

Abstract : Money market structures shape monetary policy design, but the way central banks perform their operations also has an impact on the evolution of money markets. This is important, because microeconomic differences in the way the same macroeconomic policy is implemented may be non-neutral. In this paper, we take a panel approach in order to investigate both directions of causality. Thanks to three newly-collected datasets covering ten countries over two centuries, we ask (1) where, (2) how, and (3) with what results interaction between money markets and central banks has taken place. Our findings allow establishing a periodization singling out phases of convergence and divergence. They also suggest that exogenous factors – by changing both money market structures and monetary policy targets – may impact coevolution from both directions. This makes sensible theoretical treatment of the interaction between central bank policy and market structures a particularly complex endeavor.
Complete list of metadatas

Cited literature [44 references]  Display  Hide  Download

https://hal-univ-tlse2.archives-ouvertes.fr/hal-01357712
Contributor : Stefano Ugolini <>
Submitted on : Tuesday, August 30, 2016 - 12:42:57 PM
Last modification on : Wednesday, May 23, 2018 - 5:58:08 PM

File

Ugolini (CUP 2016) for HAL Dep...
Files produced by the author(s)

Identifiers

Collections

Citation

Clemens Jobst, Stefano Ugolini. The Coevolution of Money Markets and Monetary Policy, 1815–2008. Michael D. Bordo, Øyvind Eitrheim, Marc Flandreau, Jan F. Qvigstad. Central Banks at a Crossroads: What Can We Learn from History?, Cambridge University Press, pp.145-194, 2016, 9781316570401. ⟨10.1017/CBO9781316570401.005⟩. ⟨hal-01357712⟩

Share

Metrics

Record views

270

Files downloads

927