Finally, not all clearly beneficial results can be reported on in monetized terms.

And the Fed has continued its low interest monetary policy.

Monetary policy is now drawing on a more comprehensive toolkit, such as the policy rate, the interest rate corridor, required reserve ratios, and the reserve option mechanism.

(h) The Board welcomes the attempts to maximize the interest earnings on idle cash resources, in response to its comments.

It may have had something to do with the near total lack of response of long term interest rates to monetary tightening.

World monetary conditions seem to point to a protracted period of high liquidity and low international interest rates.

So monetary policy has since remained tight, with high interest rates contributing to slowing investment and consumption.

For example, the classical prohibition on usury was softened from a ban on charging interest on all loans to a ban on charging interest on loans for which the lender had no alternative use, i.e., for charging interest on hoards or cash balances.

Because European interest rates no longer are clearly out of whack with the fundamentals of the euro zone economy, monetary policy has become more complex.

It also lowered long term interest rates in the US and made monetary conditions there more expansionary.

The capital outflow has also prevented the monetary authorities from taking advantage of falling inflation to reduce interest rates.

The closer to zero they fall, the more problematic monetary policy becomes. The policy instruments no longer work.

Short term market interest rates will fall, but, as investors begin to recognize the ultimate inflationary consequences of very loose monetary policy, longer term interest rates will rise.

For example, many countries that were tightening their monetary policy when the first signs of turbulence emerged have either put interest rate hikes on hold, or, like Brazil, have already started to reduce rates.

Since the interest rate set by the ECB is now less than 1 , there is little difference between its current monetary policy and what the Bank of Spain would do if it could set its own interest rate. But when the euro zone starts to recover, the ECB might choose to raise the interest rate before a higher rate would be appropriate for Spain, which could exacerbate Spanish unemployment.

Over the past 25 years in Europe, unemployment rose as monetary policy was tightened and interest rates were raised to fight inflation.

The usual monetary policy response of lowering interest rates is unable to reverse this sharp drop in demand.

In the previous tightening cycle, which began in 2004, it took the Fed two years to normalize the policy rate.

The only effective anti inflation strategy entails aggressive monetary tightening that takes policy rates into the restrictive zone.

The Fed s actions have involved what former Fed governor Larry Meyer calls liquidity tools, as opposed to interest rate based monetary policy.

Once nominal interest rates cannot be lowered further, central banks use other tools to determine the monetary policy stance.

These costs are more than offset by interest income earned on cash balances, which are budgeted under income section 2, General income.

in cash, or

Prime Minister John Diefenbaker central bank monetary policy was directed towards increasing the money supply to cause low interest rates, and have full employment.

Monetary policy was undermined by the banking crisis, and any reduction of interest rates to boost economic activities would encourage further flight of capital and stop capital inflows.

In Western Europe, improved growth prospects and the control of inflation had enabled monetary authorities to reduce interest rates still more.

If it is ensured that the number of accounts operated is kept to a minimum, the cash arrangement will be made more efficient by reducing the administrative cost of the Treasury function, reducing the level of bank charges and providing more scope for increasing the interest earned on available cash balances.

Pressures are mounting on the ECB to raise interest rates and Berlusconi and Co. s attacks are as much as an attempt to forestall future rate hikes as to get the ECB to loosen its monetary policy.

a Sum of cash and term deposits and the cash pool.

Interest

And, even Einstein saw compounding work that is interest on, interest on, interest.

And that is an excellent segue into the notion of a bank note. bank note...

Contributions in cash

The financial overview is based on provisional 2004 amounts obtained from ADM FIN.

UNDG United Nations Development Group

Cash and term deposits

Cash advances

Cash contributions

Cash management

Cash holdings

First, the divergence of monetary policies between the US and other major economies is already universally understood and expected. Thus, the interest rate differential, like the US rate hike itself, should already be priced into currency values.

There is an old saying about monetary policy being useless in recession because the effect of lowering interest rates is like pushing on a string.

Here, monetary authorities must be vigilant, and continue their non standard interventions managing both short term and long term interest rates.

However, despite weak growth, interest rates in Europe remained high because of the restrictive monetary policy of the Bundesbank.

The policy implications outside the US and Japan, where rates are close to zero, are that central banks can safely cut policy rates and continue aggressive liquidity support operations with little risk of inflation.,..