Implications for the Eurosystem’s Operational Framework
This chapter presents the implications of the theoretical analysis for the Eurosystem’s operational framework. We start with a comment on the implications for the interbank market rate in the euro area. Then, we focus on the question which of the three models presented (current rate model, average rate model, overlapping maturities model) most closely fulfills the requirements that should be met by Eurosystem’s operational framework. We go on to evaluate the 2004-changes to the Eurosystem’s monetary policy instruments. Finally, we suggest a further measure to improve the Eurosystem’s operational framework.
KeywordsMonetary Policy Central Bank Euro Area Maintenance Period Credit Institution
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