Abbassi, Puriya Nautz, Dieter Offermanns, Christian J.
Year of Publication:
SFB 649 discussion paper 2009,062
The maturity of the operational target of monetary policy is a distinguishing feature of the SNB's operational framework of monetary policy. While most central banks use targets for the overnight rate to signal the policy-intended interest rate level, the SNB announces a target range for the three-month Libor. This paper investigates the working and the consequences of the SNB's unique operational framework for the behavior of Swiss money market rates before and during the financial crisis.
Implementation of Monetary Policy Operational Targets of Monetary Policy Three-Month Rate Targeting Financial Crisis.