Probability Density Function and Unconventional monetary policy: Difference between pages

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imported>Doug Williamson
(Standardise capitalisation & abbreviation layout.)
 
imported>Doug Williamson
(Add Non-standard. Source: ECB https://www.ecb.europa.eu/mopo/decisions/html/index.en.html)
 
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''Financial maths''.
(UMP).


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


Probability Density Function refers to the density of a continuous random variable.  
Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.


PDF is used to specify the probability of a random variable within a particular range as opposed to taking a single value.


Normal distribution is an example of a PDF.
'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 ==
== See also ==
* [[Mean]]
* [[Forward guidance]]
* [[Normal frequency distribution]]
* [[Lending operations]]
* [[Standard deviation]]
* [[Negative interest rate policies]]
* [[Variance]]
* [[Quantitative easing ]]
* [[Z statistic]]
* [[Reserve requirements]]
* [[Sterling Monetary Framework]]
* [[Supply side policy]]
* [[Zero lower bound]]
* [[ZLB problem]]


[[Category:Knowledge_and_information_management]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_risk_management]]
[[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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