Implementing a minimum exchange rate regime by buying foreign currency eases monetary conditions domestically and may thus have a direct impact on the inflation rate. However, such foreign currency purchases involve a risky expansion of the central bank’s balance sheet total. A new model can now predict what expansion of the balance sheet a central bank must expect if it wishes to implement a minimum exchange rate in the foreign exchange market.

The December 2013 Monthly Report comments on the outlook for the German economy as macroeconomic projections for 2014 and 2015. In addition, an analysis of the German enterprises’ profitability and financing in 2012 is included; furthermore an outlook for European retail payments (SEPA) is described and the new importance of repo markets in a changing financial system is reconsidered.

Monatsberichtsaufsatz September 2022

Professor Axel A Weber, President of the Deutsche Bundesbank, Speech delivered as part of the Ken Dixon public lecture series at the University of York

The July 2022 Monthly Report presents results and use cases of distributional wealth accounts (DWA) for households in Germany and describes the evolution of the creditor structure of government debt in the euro area. It also analyses the factors influencing international portfolio flows and contains an article on the cross-border interoperability of central bank digital currency.