BIS paper: short-term interest rate may no longer be enough to set policy
Monetary policy has to operate in a very different world post-2008, authors say
Central banks looking to set monetary policy in the post-2008 world may have to employ more tools than just the short-run interest rate, according to research published by the Bank for International Settlements (BIS) today (March 8).
Madhusudan Mohanty, an economist at the BIS, and Kumar Rishabh of the University of Basel and the Reserve Bank of India, in a working paper focus on how changes in the nature of financial intermediation have impacted the monetary transmission mechanism in emerging
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