ECB workshop on money markets, monetary policy implementation and central bank balance sheets

Properly functioning money markets are critical to monetary policy transmission. Money markets, both unsecured and secured, have been affected by the financial and sovereign debt crisis, by regulatory reforms and by changes in the financial market environment, in infrastructures and in innovation. In response to the crisis, the ECB and other central banks have resorted to non-standard measures: negative interest rates, sizeable asset purchase programmes, more flexible access to liquidity through wider collateral eligibility and expanded refinancing operations, as well as forward guidance on the future path of interest rates. In addition to analysing how effective and efficient these measures are in transmitting the monetary policy stance, central banks must also understand their impact on market functioning and on monetary normalisation in a post-crisis environment. The workshop will bring together central bankers, academics and market practitioners to discuss the key developments in money markets, monetary policy implementation and central bank operational frameworks.