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    <description>Bank of Finland Bulletin - Articles on the economy from the Bank of Finland</description>
    
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        <pubDate>Thu, 07 Sep 2023 08:00:00 +0300</pubDate>
        <title>Back to the old normal? Monetary policy implementation in a landscape of rising interest rates and a shrinking Eurosystem balance sheet</title>
        <link>https://www.bofbulletin.fi/article/analysis/2023/back-to-the-old-normal-monetary-policy-implementation-in-a-landscape-of-rising-interest-rates-and-a-shrinking-eurosystem-balance-sheet/</link>
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        <category>Monetary policy</category>
        
        <description><![CDATA[The past two years have seen a strong surge in inflation. In response, the European Central Bank (ECB) has tightened its monetary policy considerably: the key ECB interest rates have been raised by altogether 4.25%, and securities holdings and the volume of credit granted to banks have been allowed to shrink significantly. With monetary policy normalisation proceeding, the ECB has begun a review of how it will implement monetary policy in the future. Will the deposit facility rate continue to be the key tool to control the level of financing costs? And how far should the Eurosystem balance sheet be allowed to shrink? Maintaining a larger Eurosystem balance sheet than before would enable the consideration of climate factors in the years ahead.]]></description>
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        <et:author>
          <et:firstName>Juha</et:firstName>
          <et:lastName>Niemelä</et:lastName>
          <et:title></et:title>
          <et:url>https://www.bofbulletin.fi/author/juha-niemela/</et:url>
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        <et:author>
          <et:firstName>Tuomas</et:firstName>
          <et:lastName>Välimäki</et:lastName>
          <et:title>Member of the Board</et:title>
          <et:url>https://www.bofbulletin.fi/author/tuomas-valimaki/</et:url>
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      <item>
        <pubDate>Mon, 31 May 2021 12:35:00 +0300</pubDate>
        <title>Future of payments at hand</title>
        <link>https://www.bofbulletin.fi/article/analysis/2021/future-of-payments-at-hand/</link>
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        <category>Money and payments</category>
        
        <category>Digital euro</category>
        
        <description><![CDATA[Payments are a basic function in society, the lifeblood of economic activity; if disrupted, this could bring society to a total standstill. It matters how payment services and the systems executing these services are designed, how they are managed and what costs are involved. New types of services enabled by technological progress, increasing competition as a result of deregulation and risks related to the digital environment have an impact on both payment services and the underlying arrangements. The coronavirus pandemic has irreversibly changed how we live during the past year and has accelerated many long-brewing developments. The future of payments may arrive sooner than anticipated just one year ago.]]></description>
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        <et:author>
          <et:firstName>Tuomas</et:firstName>
          <et:lastName>Välimäki</et:lastName>
          <et:title>Member of the Board</et:title>
          <et:url>https://www.bofbulletin.fi/author/tuomas-valimaki/</et:url>
        </et:author>
        
        <et:author>
          <et:firstName>Päivi</et:firstName>
          <et:lastName>Heikkinen</et:lastName>
          <et:title>Head of Department</et:title>
          <et:url>https://www.bofbulletin.fi/author/paivi-heikkinen/</et:url>
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      <item>
        <pubDate>Fri, 11 Sep 2020 11:30:07 +0300</pubDate>
        <title>Recent economic crises have modified the Bank of Finland's market operations</title>
        <link>https://www.bofbulletin.fi/article/analysis/2020/recent-economic-crises-have-modified-the-bank-of-finland-s-market-operations/</link>
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        <category>Monetary policy</category>
        
        <description><![CDATA[Since the global financial crisis and the European sovereign debt crisis, the traditional means used by central banks to influence economic activity and inflation have changed significantly. Once nominal risk-free interest rates fell towards zero, central banks’ ability to implement monetary policy by simply adjusting their key interest rates ceased. Instead, in recent years central banks have eased financing conditions by conducting large-scale asset purchases and offering banks refinancing on favourable terms.]]></description>
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        <et:author>
          <et:firstName>Juha</et:firstName>
          <et:lastName>Niemelä</et:lastName>
          <et:title></et:title>
          <et:url>https://www.bofbulletin.fi/author/juha-niemela/</et:url>
        </et:author>
        
        <et:author>
          <et:firstName>Tuomas</et:firstName>
          <et:lastName>Välimäki</et:lastName>
          <et:title>Member of the Board</et:title>
          <et:url>https://www.bofbulletin.fi/author/tuomas-valimaki/</et:url>
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      <item>
        <pubDate>Mon, 18 May 2015 10:00:00 +0300</pubDate>
        <title>The financial crisis changed the instruments but not the objectives of monetary policy</title>
        <link>https://www.bofbulletin.fi/article/analysis/2015/the-financial-crisis-changed-the-instruments-but-not-the-objectives-of-monetary-policy/</link>
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        <category>Monetary policy</category>
        
        <description><![CDATA[Central banks have acted forcefully to provide monetary accommodation. With little room for manoeuvre for standard interest rate policy, unconventional measures have been adopted. Committing to monetary accommodation gains importance as interest rates go down and inflation expectations increasingly deviate from the target; the expectations channel of monetary policy transmission becomes key when the aim is to raise inflation expectations and improve confidence. One example of the new monetary policy instruments is the Eurosystem's expanded asset purchase programme, which demonstrates the determination of the Governing Council to return price developments to a path in line with its price stability objective.]]></description>
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        <et:author>
          <et:firstName>Tuomas</et:firstName>
          <et:lastName>Välimäki</et:lastName>
          <et:title>Member of the Board</et:title>
          <et:url>https://www.bofbulletin.fi/author/tuomas-valimaki/</et:url>
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        <et:author>
          <et:firstName>Jarmo</et:firstName>
          <et:lastName>Kontulainen</et:lastName>
          <et:title></et:title>
          <et:url>https://www.bofbulletin.fi/author/jarmo-kontulainen/</et:url>
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