An international bank that fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability. Originally established to coordinate reparations payments post-WWI, the BIS now plays a key role in facilitating central bank cooperation and setting standards for global banking.
The cumulative desire to hold cash as opposed to financial assets.
The European Central Bank (ECB) is the central bank of the European Union, established in 1998. It is responsible for eurozone monetary policy, particularly the setting of interest rates, and operates independently of national governments.
Any organization whose core activity is to provide financial services or advice in relation to financial products. Financial institutions include state bodies, such as central banks, and private companies, such as banks, building societies, and financial markets.
Fractional reserve banking is a regulation in the banking industry whereby banks (and other similar institutions) keep reserves that are less than their total deposits.
A managed float, also known as a dirty float, is an exchange rate system where a currency’s value is primarily determined by market forces but is also occasionally adjusted by the central bank to stabilize or reach specific targets.
Monetary policy comprises the procedures by which governments or central banks try to affect macroeconomic conditions by influencing the supply of money. This can be achieved through various mechanisms aside from printing more money, including open-market operations, adjusting reserve requirements, and changing interest rates.
The Monetary Policy Committee (MPC) is a body within central banks that is responsible for setting the interest rates and other monetary policies to achieve economic stability and growth.
Quantitative Easing (QE) is a non-traditional monetary policy used by central banks to stimulate the economy by increasing the money supply and lowering interest rates.
Quantitative Easing (QE) is a monetary policy tool used primarily by central banks to stimulate the economy by purchasing long-term securities in the open market, thereby increasing the money supply and lowering interest rates to boost economic activity.
Quantitative Easing (QE) is a monetary policy used by central banks to stimulate the economy when conventional monetary policy becomes ineffective. Primarily enacted during periods of low or zero interest rates, QE involves the creation of new money electronically to purchase government securities and increase the money supply.
International reserves are holdings of foreign currencies and other assets that central banks use to manage currency values and balance payments between countries.
A soft landing refers to a situation in which an economy slows down but manages to avoid falling into a recession. This term was borrowed from astronautics in the late 1950s and originally described a safe moon landing.
