After his studies, Ulrich Bindseil joined the Deutsche Bundesbank's economics department in 1994. In 1997, he moved on to the European Monetary Institute and to the European Central bank in 1998. There, he was subsequently responsible for the Liquidity Management Section, the Risk Management Division, and finally for the Directorate General Market Operations (since 2012). He has been a lecturer and visiting professor at the Technical University of Berlin since 2008 and has published in the areas of central bank market operations, risk management, and European governance.

The financial crisis and its aftermath have highlighted the importance of understanding how central banks operate, that is, how they use their balance sheets and other tools to implement monetary policy decisions. This book offers a unique and detailed view of the structure, history, and impact of monetary policy operations, both in normal times and in times of crisis. Written by a leading expert and experienced central banker, it is essential reading for policy makers, practitioners, and academics alike.

• Introduction and Overview ; PART I: MONETARY POLICY OPERATIONS IN NORMAL TIMES ; 1. Basic Terminology and the Relationship to Monetary Macroeconomics ; 2. Representing Monetary Policy Operations in Financial Accounts ; 3. Operational Target of Monetary Policy ; 4. Three Basic Approaches to Monetary Policy Implementation ; 5. Several Liquidity Shocks, Averaging, and the Martingale Property of Overnight Rates ; 6. Standing Facilities and the Interest Rate Corridor ; 7. Open Market Operations in Normal Times ; 8. Reserve Requirements ; 9. Collateral ; 10. Optimal Monetary Policy Operations in Normal Times ; PART II: MONETARY POLICY IN TIMES OF CRISES ; 11. The Mechanics of Liquidity Crises ; 12. The Role of Collateral Availability for Monetary Policy ; 13. Open Market Operations and Standing Facilities ; 14. The Central Bank as Lender of Last Resort (LOLR) ; 15. LOLR and Central Bank Risk Taking ; 16. LOLR, Moral Hazard, and Incentives ; 17. The International Lender of Last Resort ; 18. Optimal Monetary Policy Implementation in Crisis Times

After his studies, Ulrich Bindseil joined the Deutsche Bundesbank's economics department in 1994. In 1997, he moved on to the European Monetary Institute and to the European Central bank in 1998. There, he was subsequently responsible for the Liquidity Management Section, the Risk Management Division, and finally for the Directorate General Market Operations (since 2012). He has been a lecturer and visiting professor at the Technical University of Berlin since 2008 and has published in the areas of central bank market operations, risk management, and European governance.

The financial crisis and its aftermath have highlighted the importance of understanding how central banks operate, that is, how they use their balance sheets and other tools to implement monetary policy decisions. This book offers a unique and detailed view of the structure, history, and impact of monetary policy operations, both in normal times and in times of crisis. Written by a leading expert and experienced central banker, it is essential reading for policy makers, practitioners, and academics alike.

• Introduction and Overview ; PART I: MONETARY POLICY OPERATIONS IN NORMAL TIMES ; 1. Basic Terminology and the Relationship to Monetary Macroeconomics ; 2. Representing Monetary Policy Operations in Financial Accounts ; 3. Operational Target of Monetary Policy ; 4. Three Basic Approaches to Monetary Policy Implementation ; 5. Several Liquidity Shocks, Averaging, and the Martingale Property of Overnight Rates ; 6. Standing Facilities and the Interest Rate Corridor ; 7. Open Market Operations in Normal Times ; 8. Reserve Requirements ; 9. Collateral ; 10. Optimal Monetary Policy Operations in Normal Times ; PART II: MONETARY POLICY IN TIMES OF CRISES ; 11. The Mechanics of Liquidity Crises ; 12. The Role of Collateral Availability for Monetary Policy ; 13. Open Market Operations and Standing Facilities ; 14. The Central Bank as Lender of Last Resort (LOLR) ; 15. LOLR and Central Bank Risk Taking ; 16. LOLR, Moral Hazard, and Incentives ; 17. The International Lender of Last Resort ; 18. Optimal Monetary Policy Implementation in Crisis Times

After his studies, Ulrich Bindseil joined the Deutsche Bundesbank's economics department in 1994. In 1997, he moved on to the European Monetary Institute and to the European Central bank in 1998. There, he was subsequently responsible for the Liquidity Management Section, the Risk Management Division, and finally for the Directorate General Market Operations (since 2012). He has been a lecturer and visiting professor at the Technical University of Berlin since 2008 and has published in the areas of central bank market operations, risk management, and European governance.

The financial crisis and its aftermath have highlighted the importance of understanding how central banks operate, that is, how they use their balance sheets and other tools to implement monetary policy decisions. This book offers a unique and detailed view of the structure, history, and impact of monetary policy operations, both in normal times and in times of crisis. Written by a leading expert and experienced central banker, it is essential reading for policy makers, practitioners, and academics alike.

• Introduction and Overview ; PART I: MONETARY POLICY OPERATIONS IN NORMAL TIMES ; 1. Basic Terminology and the Relationship to Monetary Macroeconomics ; 2. Representing Monetary Policy Operations in Financial Accounts ; 3. Operational Target of Monetary Policy ; 4. Three Basic Approaches to Monetary Policy Implementation ; 5. Several Liquidity Shocks, Averaging, and the Martingale Property of Overnight Rates ; 6. Standing Facilities and the Interest Rate Corridor ; 7. Open Market Operations in Normal Times ; 8. Reserve Requirements ; 9. Collateral ; 10. Optimal Monetary Policy Operations in Normal Times ; PART II: MONETARY POLICY IN TIMES OF CRISES ; 11. The Mechanics of Liquidity Crises ; 12. The Role of Collateral Availability for Monetary Policy ; 13. Open Market Operations and Standing Facilities ; 14. The Central Bank as Lender of Last Resort (LOLR) ; 15. LOLR and Central Bank Risk Taking ; 16. LOLR, Moral Hazard, and Incentives ; 17. The International Lender of Last Resort ; 18. Optimal Monetary Policy Implementation in Crisis Times