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The Eurosystem, the U.S. Federal Reserve, and the Bank of Japan: Similarities and Differences
Author(s) -
GERDESMEIER DIETER,
MONGELLI FRANCESCO PAOLO,
ROFFIA BARBARA
Publication year - 2007
Publication title -
journal of money, credit and banking
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.763
H-Index - 108
eISSN - 1538-4616
pISSN - 0022-2879
DOI - 10.1111/j.1538-4616.2007.00087.x
Subject(s) - monetary policy , transparency (behavior) , independence (probability theory) , quantitative easing , principal (computer security) , monetary reform , forward guidance , financial system , economics , bank rate , central bank , reserve requirement , business , monetary economics , accounting , inflation targeting , political science , credit channel , mathematics , statistics , law , computer science , operating system
The paper provides a systematic comparison of the Eurosystem, the U.S. Federal Reserve, and the Bank of Japan. These monetary authorities exhibit somewhat different status and tasks, which reflect different historical conditions and national characteristics. However, widespread changes in central banking practices in the direction of greater independence and increased transparency, as well as changes in the economic and financial environment over the past 15–20 years, have contributed to reduce the differences among these three world's principal monetary authorities. A comparison based on simple “over‐the‐counter” policy reaction functions shows no striking differences in terms of monetary policy implementation.