Derivative and Unconventional monetary policy: Difference between pages

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# Abbreviation for derivative financial instrument.
(UMP).
# ''Maths''.  A derivative function describes the rate of change of the underlying function, with respect to changes in one of the variables in the underlying function.


::: The first derivative describes the slope of the function curve at a given point on the curve.
Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.
 
Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.
 
 
'Unconventional' monetary policy includes:
*Quantitative easing (asset purchase programmes)
*Forward guidance
*Negative interest rates
*New central bank lending operations
 
 
Also known as 'non-standard' monetary policy.


::: The second derivative describes the rate of change of the slope.  In other words the degree of curvature, at a given point.


== See also ==
== See also ==
* [[Derivative instrument]]
* [[Forward guidance]]
* [[Embedded derivative]]
* [[Lending operations]]
* [[Greeks]]
* [[Negative interest rate policies]]
* [[Naked]]
* [[Quantitative easing ]]
* [[Reserve requirements]]
* [[Sterling Monetary Framework]]
* [[Supply side policy]]
* [[Zero lower bound]]
* [[ZLB problem]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 22:06, 8 June 2020

(UMP).

Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.

Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.


'Unconventional' monetary policy includes:

  • Quantitative easing (asset purchase programmes)
  • Forward guidance
  • Negative interest rates
  • New central bank lending operations


Also known as 'non-standard' monetary policy.


See also

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