Monetary Economics

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6 domain-specific abstractions whose origin domain is Monetary Economics.

• Credit channel — Explain how monetary-policy impulses are amplified when financial frictions change borrowers' external-finance premiums or banks' supply of intermediated credit, altering spending beyond the conventional interest-rate channel.
• Gold points — The upper and lower exchange-rate bounds under the gold standard at which the cost of settling by shipping gold became cheaper than buying or selling foreign bills.
• Horizontalism — A post-Keynesian theory of endogenous money in which bank lending creates deposits and central banks accommodate the resulting reserve demand at a policy-controlled interest rate.
• Monetary conditions index — A weighted combination of an interest rate and an exchange rate intended to summarize their joint influence on aggregate demand relative to a baseline.
• Quantitative easing — A central-bank balance-sheet policy that purchases longer-duration or riskier financial assets at announced scale when ordinary short-rate policy is constrained, seeking to ease broader financial conditions through yields, portfolios, liquidity and expectations.
• Taylor rule — A monetary-policy reaction rule that sets a nominal short-term interest-rate target as a neutral rate plus responses to inflation's deviation from target and the output gap.