，大概使用以下来源：
1. Central Bank of Ireland. Measures Taken to Improve Monetary Stability. 2020.
2. Krugman, Paul. The Return of Depression Economics. 2000.
3. Board of Governors of the Federal Reserve System. Monetary Policy Instruments. 2009.
4. Kuzminsky, Alisa. Compensatory Monetary Policy. 2018.
Compensatory Monetary Policy
Compensatory monetary policy is a branch of monetary policy that relies on stimulus or penalties to promote or inhibit economic behaviors or activities, typically aiming for macroeconomic stability, inflation control, and economic growth. Compensatory monetary policy is a tool that has been used by central banks all around the world to help their respective economies in times of distress. It works by manipulating the supply of money in circulation to affect the demand and availability of funds to the public, in turn influencing how much money businesses and consumers are willing to spend, and how much they are willing to save. By changing the rate of money flow, central banks can try to foster an environment of economic growth and stability, while also trying to combat rising prices or deflationary shocks.
France, Britain, and the United States are all example countries that have employed monetary policy to optimize economic behavior and manage economic stability, allowing them to respond appropriately in response to certain economic stimuli or risks. In Ireland, the Central Bank of Ireland has taken measures to improve the country’s monetary stability, which includes the use of compensatory policies. Compensatory monetary policy has the potential to smooth out the rough waves created by economic cycles.
The most commonly used method for implementing compensatory monetary policy is through changing the money supply. This is done through open market operations (OMO), which involves the purchasing and selling of securities on financial markets such as bonds and Treasury bills. Central banks use OMO to influence the money supply and interest rates in their economies. If a central bank wishes to stimulate the economy, they will purchase more securities, injecting more money into the economy, resulting in lower loan rates and increased consumer spending. This type of policy encourages spending by making it cheaper to borrow money.
Similarly, if the central bank wants to slow down the economy, they can conduct what is known as “sterilized OMO”. Sterilizing OMO is essentially the same as OMO, except with the addition of a reverse transaction, to “sterilize” the effects of the open market operations. This type of policy can be used to reduce demand and loan rates, encouraging consumers to save more, rather than spend.
In addition to adjusting the money supply, central banks may also change the reserve requirement. By increasing the reserve requirement, banks are encouraged to keep more money in reserve, rather than loan it out. This reduces the amount of money available for lending, which decreases economic activity, thereby slowing the economy down. Conversely, reducing the reserve requirement encourages banks to loan out more money, leading to more economic activity and stimulating the economy.
Central banks may also use more indirect tactics to influence the economy. For example, they may lower or raise interest rates, set a target rate below inflation, or create a central bank asset/liability committee. For example, the Federal Reserve Board of Governors has implemented a monetary policy instrument, known as the Federal Funds Rate, which is the interest rate at which banks make loans to each other. Lowering this rate encourages banks to make more loans, resulting in increased economic activity and growth.
Compensatory monetary policy is a powerful tool, and has proven its worth over the years, helping to stabilize and foster an environment of economic growth. Central banks must carefully monitor the changing economic environment, and make calculated and proactive decisions to ensure its effectiveness. As Paul Krugman said in his book The Return of Depression Economics, “The challenge of using monetary policy will be to make it highly proactive and capable of dealing with whatever risk comes up.” Knowing what risks may arise, and being prepared to take the proper action, will ensure that the effectiveness of compensatory monetary policy is maximized.
