Implementing Monetary Policy at the SNB

From swissmacroandhistory.substack.com

When central banks raise or cut policy rates, we tend to focus on the decision itself. Less attention is paid to how that decision is implemented in money markets. Yet without the right operational framework, policy rates would not be transmitted to market interest rates at all. Monetary policy implementation is therefore a central, if often underappreciated, part of central banking. Academic discussions frequently gloss over these issues, moving directly from policy decisions to macroeconomic outcomes and implicitly assuming that the policy rate is automatically enforced in markets. In practice, it is monetary ... (full story)