Monetary policy of Germany as a tool for crisis mitigation

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Гальчук, Сергій
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This paper analyses the development of monetary policy theory and how it affects the German monetary policy as a part of European Central Bank framework. It takes deeper look on the implementation of basic tools of monetary policy as interest rates, open market operations, long term refinancing operations and fine-tuning operations specific to the Bundesbank. In terms of crisis, it covers the actions of Bundesbank and ECB during Global crisis of 2008 and COVID-19 crisis to understand the framework and to see the development of new approaches. As for model it provides a linear regression for determining effects of monetary policy reflected in factors like GDP, interest rate and M3 aggregate on inflation. In addition, I discover the potential interest rates with the help of Taylor’s rule. After that I implement a possible inflation rate with a linear regression equation to provide basis for comparison and evaluate the effectiveness of interest rate.
Monetary policy, interest rate, ECB, бакалаврська робота