Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Table 9.1 Balance sheet of the European Central Bank (September 2000) Source: Monthly Bulletin, ECB, November 2000

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Table 9.2 M0, M2, money market multipliers and currency (2000)

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Table 9.3 Theoretical values of the money multiplier (M1/M0)

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Table 9.4 Seigniorage around the world Source: Masson, Savastano and Sahrma (1998)

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Table 9.5 Bank insurance

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.1 Monetary policy procedures (a) Money targeting (b) Interest rate targeting Supply of base money (M0) Interest rate Supply of base money (M0)

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Where’s M0? Foreign assets Loans to comm. banks Claims on governments Reserves of commercial banks Bank notes held by nonbanks Deposits of government Net worth Deposits of private sector Deposits of government Real assets, incl. net worth of banking sector Government and private debt Net worth Vault cash and reserves at Central Bank Loans and securities Liabilities to Central Bank Deposits of private sector Net worth Bank notes held by nonbanks Central Bank Consolidated Government and Nonbank Private Sector Commercial Banks Assets Liabilities Assets Liabilities Assets Liabilities Figure 9.2

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.3 Reserves-money stock link Reserves Deposits change in reserves change in deposits

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.4 Reserves-money stock link with currency change in reserves change in deposits CurrencyReserves DepositsCurrency M0 M1

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.5 The money market Monetary base (M0) Interest rate 0 A B C

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS EONIA = euro overnight index average ECB interest rates Figure 9.6

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.7 Bank of England’s Fan (inflation forecasts as of November 2000) Percentage increase in prices on a year earlier Source: Inflation Report, Bank of England, November 2000

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.8 Foreign exchange market intervention and sterilization

Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Figure 9.9 Reserve and capital adequacy ratios