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Central banking and financial innovation. A survey of the modern literature

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  • Jan Marc Berk

    ()
    (De Nederlandsche Bank, Monetary and Economic Policy Department, Vrije Universiteit, Faculty of Economics and Business Administration, and Tinbergen Institute, Amsterdam (The Netherlands))

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    Abstract

    We review the literature regarding the impact of financial innovation on the monetary transmission mechanism and on the way the central bank can achieve its ultimate goal, that is to control the price level. We argue that, although the form ofcentral bank instruments and current methods for implementing monetary policy may change, the goals that the policy makers try achieve by employing these instruments remain valid, and achievable.

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    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/9912/9794
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    Bibliographic Info

    Article provided by Banca Nazionale del Lavoro in its journal BNL Quarterly Review.

    Volume (Year): 55 (2002)
    Issue (Month): 222 ()
    Pages: 263-297

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    Handle: RePEc:psl:bnlaqr:2002:32

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    Keywords: Central Banking; Monetary Policy; Monetary; Policy; Price Level; Prices;

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