Wednesday, 8 June 2011

The Federal Reserve System of the USA and Central Banks of the Other G-7 Countries

Central banks, and the effects of the U.S., such as the Federal Reserve (o.
Foreign exchange markets in three main areas:
Amount of market instruments, and currency transactions.
Foreign exchange transactions are the main repo agreement to sell the same security back to the same price as before, which is later date (usually 15 days), and a certain amount. These injections in the reserves, banking arrangements of the systems of the transitional period. The impact of foreign exchange market, should weaken the dollar. Could push the client or repurchase agreements by this system reposcratches. Matching purchases and sales agreement is the opposite of the right to return the contract. Be matched to the purchase and sale agreement, the Federal Reserve central bank selling dealer or a foreign security agreement Instant delivery price of a pre-determined to buy back shares of some point in the future (usually within 7 days, this event includes the drain reserves temporarily. Is the impact of the currency should strengthen the markets dollar.
Major central banks engaged in foreign exchange transactions to intervene more roads in the open market. Activities, including payments between central banks or international organizations. In addition, the Federal Reserve in exchange arrangements with other central banks to put the finishing touches on a series of 1962, for example, helped the war effort allied against Iraq's invasion of Kuwait, 1990-1991, is the application of payments to the Bundesbank and the Bank of Japan Federal Reserve. In addition, performance payments, and the World Bank or the United Nations central banks. The aim of intervention by the U.S. financial markets in the U.S. Treasury Department and the Federal Reserve to restore market under appropriate conditions, or to influence exchange rates. Not against the reservation. Two types of foreign exchange interventions, and there should be sterilized intervention naked and intervention.
Nude project or intervention is not sterilized and foreign, and changes in income only. This is the intervention itself is the Federal Reserve, or to purchase or sell one currency against the dollar. In influencing the currency markets, as well as the money is
The impact on money supply. Affect the money supply in line with the amendments and interest rates and the price should be at all levels. Economy. For this reason, naked foreign currency effects of intervention on the long term. Sterilized intervention to neutralize its impact on money supply. It also seeks to influence the efforts of the central banks of many of the foreign exchange markets, and sterilization of their economy, and will affect every corner of the efforts is the best way. This applies to the Federal Reserve better.
This includes the additional step of sterilized intervention the original currency transactions. This step consists of interference occurs because of asset sales reach additional compensation. This dream may be easier if you think that if you finance the money to buy one of the central bank, through the sale of government securities. Sterilized intervention because it affects not only access
Some of the demand for money, and tend to be short term effects of impacts on the medium term. The other countries of G7, and the central banks of Germany and Japan after World War II that contribute to the development of new financial systems. The two countries established central banks basis, such as the Federal Reserve. Line, along with the model fields to meet the needs of internal and delinquency. Established European Central Bank, June 1, 1998 to control the rising euro. During the transition to the third stage of Economic and Monetary Union (Implementation of the single currency in January 1, 1999) was responsible for the implementation of monetary policy. European Central Bank, the activities of members of the European individual and independent unit to monitor the German Deutsche Bank, France and central banks, such as Dai Italian Ufficio Camb. Bodies of Governors of the European Central Bank in Europe to run the system, which is a function of banks, and behavioral Central, to manage the trading currency in foreign exchange, holding and managing the official reserves of foreign exchange resources and develop the efficiency of the payments system. This is the European Monetary Institute, European Central Bank (EMI), as his successor. Was known widely Bundesbank and the Central Bank Model for the European Central Bank. Dedicated to the German Central Bank, as an independent body stable currency, low inflation and control the money supply. Has developed a hyper-inflation in Germany after World War II, to create a fertile application of extremist political parties and political and economic scenarios for the start of World War II. German President should avoid this economic mess. Federal Reserve (central bank of Japan in terms of deviation from the model and independence. Although the full responsibility for the advice in the field of monetary policy
Changes in policy by the Treasury Department is still subject to approval by the Republic of Armenia (Ministry of Finance). Bank of Japan targets collected M2. Once in the quarter-final, Japan's central bank
Tank, released its study of the economic situation. Tanaka is the Japanese equivalent to represent the state in the economy, and the Book of the American definition. These are the results tank does not automatically lead changes in monetary policy. In general, refers to the lack of independence of central bank inflation. This does not work, Japan is another example of how the various policies of financial and economic crisis may have the opposite effect in specific areas. Can be considered as the Bank of England and the central bank less independent the bank, the Government may reconsider its decision. Bank of England's position was not easy. Rate of inflation in Britain, and reached a height during 1991, despite the fact that the last two digits 1980, the Bank of England £ a great job to prove that it can operate in a mirror to the world of exchange-rate mechanism. ERM is the last in 1990, and the decision of the Bank of England to keep the mark against the pound within the 6 percent allowed, but
There was a short stay in ERM pounds. Risk Management deviation between the obligations and interest rates associated with artificially high pound sterling, the effects of the country's overall economy on the sale of 1992. Bank of France is a shared responsibility of the Ministry of the Treasury for domestic monetary policy of Armenia. The main objective of growth without inflation and balance the external account. France became a major player in
Foreign exchange markets, in July 1993, the ERM crisis, and when the demolition of
A victim of the French franc money markets. Italy's central bank responsible for monetary policy, financial intermediaries and foreign currencies. Such as cash other former European, central banks, the responsibility for the Board of Investment in the country after the ERM crisis. German Central Bank and the Bank de France, along with the Bank of Italy is the European System of Central Banks (ESCB) is part of. A bit thin on the Bank of Canada and an independent central bank, and money. Because of the complex financial relationship with the United States of America, the Canadian dollar, U.S. dollar and a strong relationship. Bank of China from the vagaries of the intervention other G7 central banks to promote Canadian dollars. Happened in 1999, after the central bank to change the mechanisms of political interference from the previous policy of intervention in increments of recognition of only $ 50 million at a fixed rate on the basis of the previous document, it does not work.


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