The operation of monetary policy in Ireland

Abstract

Most reviews of monetary policy concentrate on its appropriate ultimate objective, the degree to which it is being achieved and, from a macro-economic perspective, why the outcome may be deviating from that envisaged. A different emphasis is given here, which timelessly captures the significance of the financial markets nowadays for the successful operation of monetary policy, and concentrates on how it is conducted from day to day. This account also highlights why the ultimate objective of monetary policy will not be realised unless the cumulative results of the daily operations of monetary policy in the financial markets are compatible with realising price stability over time.