Economic commentary: The framework for implementing monetary policy, the balance sheet and the financial crisis
Date
28/01/2011
Economic commentary: The framework for the implementation of monetary policy, the Riksbank’s balance sheet and the financial crisis
Monetary policy is reflected in the Riksbank’s balance sheet. This was made particularly clear during the financial crisis, when the balance sheet total more than tripled. Independent of the financial crisis, important structural changes have taken place, leading to the banking system moving from having a structural deficit as regards the Riksbank towards having a surplus. This means that the Riksbank will continue to invite the banks to invest their surplus liquidity in Riksbank certificates, as opposed to offering the banks funding in the form of weekly repo transactions, as was the case before the crisis. In this economic commentary, the authors describe how the operational framework functions and its relation to the Riksbank’s balance sheet.
Read the commentary via the link.
