Current monetary policy The central bank of the Federal Republic of Germany is the Deutsche Bundesbank, also

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Current monetary policy The central bank of the Federal Republic of Germany is the Deutsche Bundesbank, also known as BUBA. BUBA is the most influential member of the European Central Bank and the European System of Central Bank. Go to the Web site of BUBA (www.bundesbank.de) and check the monetary policy tools of the Deutsche Bundesbank.

a. What is the mandate of the Deutsche Bundesbank and how is it defined? How does this mandate differ from that of the European Central Bank? What are the tools that BUBA uses in order to achieve price stability?

b. Find a press release explaining the monetary policy used by the Deutsche Bundesbank. What is the rationale explained by the BUBA to justify its need to adopt this policy?

c. By examining the most recent press releases of the Deutsche Bundesbank, which of the tools of monetary policy does BUBA use more frequently? Can you explain the reason why BUBA prefers to use this specific policy most often?

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Macroeconomics

ISBN: 9781292160504

7th Global Edition

Authors: Olivier J. Blanchard

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