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  • 7/27/2019 Generation uro Students' Award 2013-2014 Teachers' Guide

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    GENERATION URO

    STUDENTS AWARD

    2013-2014

    T E A C H E R S G U I D E

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    CONTENTS

    Foreword rom Central Bank o Ireland Governor, Patrick Honohan

    1. Introduction

    - About the competition 4

    - Participants 4

    - Teams 4

    - Registration 4

    - Prizes 4

    2. Teachers role 5

    Mentoring 5

    Resources

    3. Rounds 5

    Round 1: Online quiz 5 Round 2: Essay 5

    Round 3: National Final 6

    Questions and answers session 6

    4. Composition o the expert panel 6

    5. Assessment criteria 6

    6. European Award Event 7

    7. Privacy statement 7

    8. Publicity 8

    Appendix: Introduction to central banking and

    monetary policy within the euro area 8

    Schedule 12

    Contacts at the Central Bank o Ireland 12

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    FOREWORD

    On behal o the Central Bank o Ireland, I am pleased to introduce this years Generation uroStudents Award.

    Now in its third year, the competition continues to attract the best and brightest young talentrom students across Ireland who wish to learn more about economics and the important roleo monetary policy decision making. I am delighted to say that schools rom all our corners othe country took part last year and, in the end, Marian College in Dublin took home thecoveted title o National Winners.

    The Generation uro Students Award is a great opportunity or the next generation to reecton the unctions perormed by the European Central Bank, the Eurosystem and each o the national central banks incontributing to monetary policy decisions and price stability or the euro area. The competition challengesstudents to think outside the classroom and develop key skills including economic reasoning, critical analysis, teamwork and public speaking; skills which we hope will become valuable to them in any walk o lie.

    The competition comprises three rounds: an online quiz, an assignment and a presentation to the Central Bank oIreland at the National Final. As students work their way through the competition, they will learn rst-hand thecomplexity o decisions and variety o actors that contribute to monetary policy development. The National Winnerswill once again represent Ireland at the European Award Event in Frankurt, Germany, where they will meet ECBPresident, Mario Draghi and the winning teams rom across Europe and participate in a series o workshops andevents.

    I wish those taking part the very best o luck and I hope that you enjoy the experience.

    Patrick Honohan

    Governor, Central Bank o Ireland

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    Registration

    To register or the competition, please visit

    www.generationeuro.ie and complete the instructions

    online under the drop-down menu or Ireland - English.

    Registration is open rom 1 October and concludes with

    the end o Round 1. Early registration and completion o

    Round 1 is strongly advised.

    When registering, teams will be asked to enter the

    ollowing details:

    Their school name, ull address and a telephone

    number;

    The name o one nominated teacher, their contact

    email address and a contact telephone number

    (correspondence with teams will be made via the

    teacher); A team name (think of something creative!);

    An email address or the team which will be used or

    login purposes (we suggest you create a new email

    address for the team);

    The names o each student including the Team

    Captain.

    Prizes

    The National Winners 2013/2014 will travel to the

    European Award Event at the ECB in Frankurt, Germanyin April 2014 where they will be accompanied by their

    teacher to attend a series o educational events.

    The school will receive a specially-commissioned glass

    trophy at the National Final in recognition o the teams

    achievement and will eature in various promotional

    materials.

    All nalists will receive ramed Certicates o Excellence

    rom the Governor o the Central Bank o Ireland and

    individual book tokens.

    Teams who successully complete Round 2 will receive

    signed Certicates o Merit.

    1. INTRODUCTION

    About the competition

    The Generation uro Students Award is the annual

    teambased competition or secondary schools

    organised by the Central Bank o Ireland in

    conjunction with the European Central Bank (ECB).

    The competition challenges Transition Year students to

    learn about monetary policy instruments, in particular

    interest rate decisions, and to simulate the role o the

    Governing Council o the ECB to determine the most

    appropriate interest rate or the euro area.

    The competition comprises three separate rounds

    including an online quiz, an essay and a presentation

    by the nalists to a panel at the Central Bank o Ireland at

    the National Final in March 2014.

    Participants

    The competition is open to all Transition Year students,

    irrespective o the subjects they are currently studying.

    However, it is most suitable or students interested in

    pursuing studies or careers in economics, business

    studies or accounting.

    The competition is a challenging one and the standards

    are high. However, we will provide lots o resources and

    advice to help you through each round o the

    competition.

    Teams

    A team consists oour students rom the same school

    and one nominated teacher rom their school who will

    act as mentor or the competition.

    Students must nominate a Team Captain to co-ordinate

    the eorts o the team at all stages o the competition.

    The composition o the team should not change during

    the competition unless exceptional circumstances, such

    as illness, intervene. In such cases, teams may nominate

    a reserve student and notiy the Central Bank o Ireland.

    National Winners 2013 rom Marian College in Dublin

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    2. TEACHERS ROLE

    Mentoring

    The teachers primary role is to act as mentor or the

    team and to encourage amd motivate participants

    through each round o the competition in order to

    meet each deadline.

    Using a variety o resources, teachers should oer

    guidance to students and ensure that work presented is

    consistent and o the required standard. Teams should

    be encouraged to think independently and conduct

    research o their own in order to complete each round, in

    particular during Rounds 2 and 3.

    Teachers will be expected to accompany successul

    teams to Round 3, the National Final which will take

    place at the Central Bank o Ireland beore an audience

    o invited guests, and as part o their prize to the ECB

    should they become National Winners.

    In the interests o airness, we ask that only one teacher

    be assigned to mentor each team. A reserve teacher maysubstitute in the event o exceptional circumstances.

    Resources

    You will have access to a number o resources to guide

    and support your students through each round o the

    competition. Your main resources will be:

    The Facebook competition page at

    www.acebook.com/generationeuroireland

    The competition website,

    www.generationeuro.ie, which provides a range o

    competition-related inormation and materials to

    assist in teaching the core concepts o monetary

    policy.

    The Central Bank o Ireland website,

    www.centralbank.ieand Twitter account,

    www.twitter.com/CentralBank_ie .

    The ECB website, www.ecb.europa.eu .

    Please encourage your students to become ans o the

    Facebook competition page as it is the primary channel

    or communicating directly with participants and will

    contain lots o videos and other learning aids at dierent

    stages o the competition.

    3. ROUNDS

    Round 1: Online quiz1 October 15 November 2013

    The online quiz at www.generationeuro.ie consists o

    30 randomly selected questions covering beginner,

    intermediate and expert levels. Students must answer

    the questions as a team and can start the quiz and return

    at a later time - it does not have to be completed in one

    session. The top scoring teams will be invited to

    participate in the second round. You can also do a trial

    run o the quiz beore starting i you wish.

    Round 2: Essay22 November 2013 3 February 2014

    The successul teams rom Round 1 will receive a

    briefng paper which will challenge them to complete

    an essay o 2,000 words in which they must use theirknowledge o economic theory to:

    1. Explain the actors that aect price stability

    and the role o monetary policy measures;

    2. Decide on an appropriate interest rate or the

    ECBs main renancing operations; and

    3. Assess economic conditions in the euro area

    on the basis o data available to the ECBs

    Governing Council.

    Reerence to non-standard monetary policy measuresmay also be required.

    Teams must clearly state how they arrived at their

    interest rate decision, based on their assessment o the

    economic indicators available, the economic and

    monetary conditions in the euro area. All team

    members must be involved in writing the essay, which

    should reect the opinion o the majority o the team.

    Completed essays must be sent by email to

    [email protected] beore 3 February

    2014.

    Essays will be assessed anonymously by a panel at the

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    Central Bank o Ireland and the top three teams will

    progress to the National Final.

    Round 3: National Final10 March 2014

    The top three teams will present their ndings to a senior

    judging panel at the Central Bank o Ireland in Dublin at

    the National Final which will take place in March 2014.

    The event will be attended by the other nalists and

    invited guests. Presentations must not exceed 20

    minutes and should examine the economic conditions in

    the euro area, provide an assessment o the economic

    and ination outlook, and explain the teams interest rate

    decision and relevant economic arguments.

    Teams are encouraged to be creative in the

    presentations they give and all team members should be

    equally involved in the presentation. Teachers may not

    participate or assist in the presentations at the event.

    Further guidance and a presentation template will be

    provided to the nalists in advance. The Central Bank oIreland will reimburse the travel costs o participants and

    accompanying teachers.

    Questions and answers session

    Each presentation will be ollowed by a questions and

    answers session lasting approximately 20 minutes.

    The session will allow the panel to test the teams

    understanding and knowledge o monetary policy and

    to see how they justiy their interest rate decision.

    Questions will be modelled on the monthly press

    conerences that ollow the meeting o the Governing

    Council o the ECB when the ECB s President explains the

    interest rate decision. The press conerences are available

    to view on the ECBs website at www.ecb.europa.eu and

    updates will be provided throughout the competition

    via the Facebook competition page.

    Team members may be asked to clariy or expand on

    points made during their presentation or to discuss the

    workings o the economy and how their interest rate

    decision will ull the Eurosystems mandate o achieving

    price stability. The nal interest rate decision does not

    have to be unanimous, but the various viewpoints must

    be explained where opinion is divided. Teams may alsobe asked about major and current events in the real

    world that may have aected the economy.

    Team members are encouraged to coner with each

    other beore replying to the panel. However, the more

    time they spend conerring with each other, the less time

    the panel will have to ask questions, which could

    inuence their nal assessment.

    Once all nalists have completed their presentations, the

    panel will retire to deliberate. The panels decision will be

    nal and will be announced in the presence o the other

    nalists and invited guests.

    4. COMPOSITION OFTHE EXPERT PANEL

    The expert panel appointed to assess the essays and

    presentations will comprise several senior economicexperts rom the Central Bank o Ireland. Further details

    on the composition o the National Final panel will be

    provided to teams in advance.

    5. ASSESSMENT CRITERIA

    The panel will assess essays on the basis o:

    adherence to word count limit (2000 words);

    presentation o material; the accuracy o the proposed interest rate decision

    and the reasons or that decision; and

    amiliarity with, and accurate use o, expressions

    and terms related to monetary policy.

    The panel will assess presentations on the basis o:

    an assessment o economic conditions as per the

    assignment;

    an assessment o the economic and ination outlook

    or the eurozone;

    the suitability o the teams recommended interest

    rate decision, with an emphasis on the explanation o

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    the reasons or arriving at that decision;

    evidence o independent research conducted;

    originality o material;

    clarity and accuracy o presentation; and the level o participation o team members.

    6. EUROPEAN AWARD EVENT

    The European Award Event at the ECB is an opportunity

    or each o the winning teams rom across Europe to

    learn more about the workings o the Eurosystem.

    Students will meet the President o the ECB, the

    Governors and representatives rom the various national

    central banks taking part and each o the national

    winning teams. Students will participate in a number o

    group discussions and workshops with economists rom

    the ECB.

    In addition to the various learning benets, there is a

    social aspect to the trip and students will take part in a

    relaxed programme o events where they will visit the

    city o Frankurt.

    7. PRIVACY STATEMENT

    i) Data protection and purpose o processing

    Any personal data the students and teachers provide will

    be processed in accordance with the Data Protection

    Regulation (1). The Press and Inormation Division o the

    European Central Bank (ECB) will collect and handle the

    personal data as the data controller. The data processor

    which hosts the Generation uro website and processesthe data on the website under instruction rom and on

    behal o the ECB is Havas Worldwide Dusseldor GmbH

    (Euro RSCG GmbH). Those who wish to enter the

    competition have to ll in the orm on the Generation

    uro website. All the participants data will be put into a

    database. The data collected will be used to manage

    participation in the competition, to access competition-

    related inormation, to rank the participants, to award

    the prizes and to contact and provide the participants

    with any relevant inormation. Only the personal data

    provided by registering on the Generation uro website

    or by sending an e-mail to generationeuro@centralbank.

    ie or [email protected] will be retained. Byentering their personal data, the participating students

    and teachers agree to the publication o the name o the

    winning team and its members on the websites o the

    ECB and/or national central bank (NCBs) and/or to its

    announcement at public events. It is also likely that

    photographs will be taken and short video recordings

    made o the winning teams on the national award days

    and at the nal award event and that these will be

    published by the ECB and/or NCBs.

    ii) Security and transer to third parties

    Personal data collected through the Generation uro

    website may be transerred to the national central banks

    (NCBs) o the euro area Member States to manage, where

    necessary, the competition at national level. Any urther

    processing o the personal data by the NCBs is subject to

    the guarantees provided in the national legislation

    implementing the Data Protection Directive 95/46/EC (2).

    Havas Worldwide Dusseldor GmbH (Euro RSCG GmbH),

    as data processor, and the NCBs have agreed to ensurethe condentiality o the personal data and provide

    adequate protection o privacy. The central banks to

    which the personal data may be disclosed are: the

    European Central Bank, Nationale Bank van Belgie/

    Banque Nationale de Belgique, Deutsche Bundesbank,

    Eesti Pank, Central Bank o Ireland, Bank o Greece, Banco

    de Espana, Banque de France, Banca dItalia, Central Bank

    o Cyprus, Banque centrale du Luxembourg, Bank

    entrali ta Malta/Central Bank o Malta, De

    Nederlandsche Bank, Oesterreichische Nationalbank,

    Banco de Portugal, Banka Slovenije, Narodna bankaSlovenska, Suomen Pankki Finlands Bank and, as o 1

    January 2014, Latvijas Banka.

    iii) Time limit and rights o access, correction and

    deletion

    The time limit or storing the above-mentioned data is

    three years, starting rom the day when the personal

    data, including a portrait, photograph or video, were

    (1) Regulation (EC) No 45/2001 o the European Parliament and o the Council o 18 December 2000 on the protection o individuals with regardto the processing o personal data by the Community institutions and bodies and on the ree movement o such data. (2) Directive 95/46/EC o theEuropean Parliament and o the Council o 24 October 1995 on the protection o individuals with regard to the processing or personal data and onthe ree movement o such data.

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    obtained. The students and teachers have the right to access,

    correct and update the data about themselves. To make inquiries

    about the collection and processing o personal data or to

    exercise the right o access or rectication, a request should besent to [email protected]. Data subjects have the

    right to resort to the European Data Protection Supervisor: www.

    edps.europa.eu/EDPSWEB.

    8. PUBLICITY

    All national media activity is managed by the Central Bank o

    Ireland and press will be notied at the end o each round o the

    schools progressing to the ollowing round. Schools who have

    reached Round 2 may inorm local media o their progress, i they

    wish. However, please ensure the Central Bank o Ireland is

    notied in advance as we may be able to assist you.

    INTRODUCTION TOCENTRAL BANKINGAND MONETARY POLICY WITHINTHE EURO AREA

    This inormation2 provides a brie overview o the European

    System o Central Banks (ESCB), the Eurosystem and an

    introduction to the monetary policy o the ECB. More detailed

    inormation to help you prepare your students or the

    competition, is available in the section entitled About the

    Eurosystem on the Generation uro website.

    The European System o Central Banks,the Eurosystem and the euro area

    Since 1 January 1999 the ECB has been responsible orconducting monetary policy or the euro area the

    worlds largest economy ater the United States. The

    euro area consists o those countries in the European

    Union that use the euro. It came into being when

    responsibility or monetary policy was transerred rom

    the national central banks o the (then) 11 countries to

    the Governing Council o the European Central Bank

    (ECB) in January 1999. Greece joined in 2001, Slovenia

    in 2007, Cyprus and Malta in 2008, Slovakia in 2009 and

    Estonia in 2011. Latvia is expected to join the euro area

    on 1 January 2014, increasing the number o euro area

    countries to 18. The launch o the euro area and the

    creation o the ECB were milestones in the ongoing

    process o European integration. To join the euro area,

    all 17 countries had to ull the convergence criteria, as

    will other EU Member States prior to adopting the euro.

    The criteria set out the economic and legal

    preconditions or countries to participate successully

    in Economic and Monetary Union.

    The legal basis or the single monetary policy is theTreaty on the Functioning o the European Union and

    the Statute o the European System o Central Banks

    (ESCB) and o the European Central Bank. The ECB was

    established as the core o the Eurosystem and the ESCB.

    The ECB and the national central banks (NCBs) together

    perorm the tasks that they have been assigned.

    The ESCB comprises the ECB and the NCBs o all EU

    Member States, irrespective o whether they have

    adopted the euro or not. The Eurosystem comprises the

    ECB and the NCBs o those EU Member States whosecurrency is the euro.

    The Eurosystem and the ESCB will coexist or as long as

    there are EU Member States outside the euro area.

    European Central Bank

    The ECB is the central bank or Europes single currency,

    the euro.

    2 This chapter is based on inormation available on the ECBs website(www.ecb.europa.eu).

    APPENDIX

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    Objectives

    According to the Treaty, the main objective o the ESCB

    is to maintain price stability. Without prejudice to thisobjective, the ESCB should support the general

    economic policies in the EU, such as ull employment

    and sustainable development.

    The objective o monetary policyaccording to the Treaty

    The Treaty establishes a clear hierarchy o objectives or

    the Eurosystem, assigning overriding importance to

    price stability. It also makes clear that ensuring price

    stability is the most important contribution that

    monetary policy can make to achieving a avourable

    economic environment and ull employment.

    These Treaty provisions reect the broad consensus that

    the benets o price stability are substantial. Maintaining

    stable prices on a sustained basis is a crucial

    precondition or increasing economic welare and the

    growth potential o an economy; the natural role o

    monetary policy in an economy is to maintain price

    stability. Monetary policy can aect real economicactivity in the shorter term, but ultimately can only

    inuence the price level in an economy.

    The Treaty provisions also imply that, in the actual

    implementation o monetary policy decisions aimed at

    maintaining price stability, the Eurosystem should also

    take into account the broader economic goals o the EU.

    In particular, given that monetary policy can aect real

    activity in the shorter term, the ECB typically should

    avoid generating excessive uctuations in output and

    employment i this is in line with the pursuit o itsprimary objective.

    Basic tasks

    According to the Treaty the basic tasks to be carried out

    through the ESCB are:

    to dene and implement the monetary policy o the

    Union;

    to conduct oreign-exchange operations;

    to hold and manage the ofcial oreign reserves o the

    euro area countries; and

    to promote the smooth operation o payment

    systems.

    Further ESCB tasks

    The ESCB is also responsible or a number o additional

    tasks in the ollowing elds:

    Banknotes: the ECB and the NCBs are responsible or

    issuing euro banknotes in the Eurosystem;

    Statistics: in cooperation with the NCBs, the ECB

    collects the statistical inormation it needs to ull its

    tasks, either rom national authorities or directly rom

    economic agents;

    Financial stability and supervision: the ESCB

    contributes to the smooth conduct o policies pursued

    by the relevant authorities in matters relating to the

    prudential supervision o credit institutions and the

    stability o the nancial system;

    International and European cooperation: the ECB

    maintains working relations with relevant institutions,

    bodies and orums both within the EU and

    internationally in respect o tasks assigned to the

    ESCB.

    The ECBs Governing Council

    The Governing Council is the main decision-makingbody o the ECB. It consists o:

    the six members o the Executive Board; and

    the governors o the NCBs o those Member States

    whose currency is the euro.

    Its responsibilities include:

    adopting the regulations and taking the decisions

    necessary to ensure the perormance o the tasks

    assigned to the ESCB; and ormulating monetary policy or the euro area. This

    includes taking decisions relating to monetary

    objectives, key interest rates and the supply o

    reserves in the Eurosystem, and establishing

    guidelines or the implementation o those decisions.

    Meetings and decisions o the ECBsGoverning Council

    The Governing Council usually meets twice a month at

    the Eurotower in Frankurt am Main, Germany. At its rst

    meeting o each month, the Governing Council assesses

    economic and monetary developments and takes its

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    monthly monetary policy decision. At its second

    meeting, it mainly discusses issues related to the other

    tasks and responsibilities o the ECB and the Eurosystem.

    Although the minutes o the meetings are not published,the monetary policy decision is explained in detail at a

    press conerence held shortly ater the rst meeting o

    each month. The President, assisted by the Vice

    President, chairs the press conerence, which is divided

    into two parts: the President rst reads out the

    Introductory Statement, which provides the rationale or

    the monetary policy decision taken by the Governing

    Council and then answers the journalists questions.

    The objective o price stability

    The objective o price stability reers to the general level

    o prices in the economy and implies avoiding prolonged

    periods o both ination and deation.

    The ECB denes its price stability objective as a year-on-

    year increase in the Harmonised Index o Consumer

    Prices (HICP) or the euro area o below, but close to, 2%

    over the medium term.

    Price stability contributes to achieving high levels oeconomic activity and employment by:

    Improving the transparency o the price mechanism.

    In an environment o stable prices, it is easier or

    people to recognise changes in relative prices (i.e.

    prices between dierent goods), instead o being

    conused by widespread changes in the general price

    level when ination is high. Consequently, they are

    able to make well-inormed consumption and

    investment decisions and to allocate resources, i.e.

    their money, more efciently; Reducing ination risk premia in interest rates (i.e. the

    compensation that investors demand or any

    unexpected rise in ination during the period o their

    investment). This reduces real interest rates and boosts

    incentives to invest;

    Rendering unnecessary unproductive activities aimed

    at hedging against the negative impact o ination or

    deation, e.g. holding on to goods in the expectation

    that their price may increase;

    Reducing distortions o ination or deation, which

    can exacerbate the distortionary impact on the

    economic behaviour o tax and social security systems;

    and

    Preventing an arbitrary redistribution o wealth and

    income as a result o unexpected periods o ination

    or deation.

    The role o the Eurosystems monetarypolicy strategy

    A monetary policy strategy is a coherent and structured

    description o how monetary policy decisions will be

    made in order to achieve the objective o a central bank.

    The monetary policy strategy or the euro area has two

    important tasks to ull.

    First, by imposing a clear structure on the policy-making

    process itsel, it ensures that the ECBs Governing Council

    has at its disposal the necessary inormation and analyses

    required to take monetary policy decisions.

    Second, it is a vehicle or explaining such decisions to the

    public. By contributing to the eectiveness o monetary

    policy, and by signalling the Eurosystems commitment to

    price stability, the strategy contributes to the credibility

    o the Eurosystem in the nancial markets.

    By setting short-term interest rates, the monetary policy

    decisions o the ECBs Governing Council have aninuence on the economy and ultimately the price level.

    Twopillar approach

    Basis or the interest rate decision

    The ECBs Governing Council has a specic approach to

    determining the nature and extent o the risks to price

    stability in the euro area over the medium term. This

    approach to organising, evaluating and cross-checking

    the inormation relevant or assessing the risks to pricestability is based on two complementary analytical

    perspectives, reerred to as the two pillars:

    the economic analysis; and

    the monetary analysis.

    The economic analysis is an assessment o the short to

    medium-term inuences on price developments, with a

    ocus on real activity (i.e. the production o goods and

    services) and nancial conditions in the economy. It

    takes account o the act that price developments over

    those horizons are inuenced largely by the interplay o

    supply and demand in the goods, services and actor

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    markets (e.g. actors o production such as labour, capital

    and land).

    The monetary analysis ocuses on the longer term, and

    draws on the long-run link between money and prices. Itserves mainly as a means o cross-checking, rom a

    medium to long-term perspective, the short to medium-

    term indications or monetary policy stemming rom the

    economic analysis.

    The two-pillar approach is designed to ensure that no

    relevant inormation is overlooked in the assessment o

    risks to price stability and that sufcient attention is paid

    to dierent perspectives and the cross-checking o

    inormation in order to come to an overall judgement on

    the risks to price stability. It represents a diversied

    analysis and ensures robust decision-making.

    Monetary policy instruments

    Monetary policy operates by steering short-term interest

    rates, thereby inuencing economic developments, in

    the best possible way. The steering o short-term interest

    rates is carried out through the operational

    implementation o monetary policy. To this end, the

    Eurosystem has at its disposal a set o monetary policyinstruments, namely open market operations, standing

    acilities and minimum reserves

    A: Open market operations

    The most important monetary policy instrument is the

    open market operation, which serves to:

    steer interest rates;

    manage the liquidity situation in the money market;

    and signal the monetary policy stance.

    Open market operations can be divided into the

    ollowing our categories:

    main renancing operations, which are regular

    liquidity-providing reverse transactions with a weekly

    requency and a maturity o one week;

    longer-term renancing operations, which are

    liquidity-providing reverse transactions with a

    monthly requency and a maturity o three months;

    ne-tuning operations, which are executed on an ad

    hoc basis and are aimed at managing the liquidity

    situation in the market and steering interest rates, in

    particular to smooth the eects on interest rates o

    unexpected uctuations in market liquidity; and

    structural operations, which are carried out through

    the issuance o debt certicates, reverse transactionsand outright transactions.

    B: Standing acilities

    The Eurosystem also oers standing acilities, which aim

    to provide and absorb overnight liquidity and set the

    boundaries or overnight market interest rates:

    the marginal lending acility, which allows counterparties

    (i.e. nancial institutions such as banks) to obtain

    overnight liquidity rom the euro area national central

    banks against eligible assets; and

    the deposit acility, which can be used by counterparties

    to make overnight deposits with the euro area

    national central banks.

    C: Minimum reserves

    The Eurosystem requires credit institutions to hold

    minimum reserves on accounts with the euro area

    national central banks. The purpose o the minimumreserve system is to stabilise money market interest rates

    and to create or enlarge a structural liquidity shortage.

    D: Nonstandard measures

    Since the intensication o the nancial crisis in

    September 2008, the ECB has introduced a number o

    non-standard monetary policy measures that are

    unprecedented in nature, scope and magnitude with the

    aim to saeguard the primary objective o price stability

    and ensure an appropriate monetary policy transmissionmechanism. These measures orm part o the

    Eurosystems monetary policy implementation toolbox,

    but are by denition exceptional and temporary in

    nature. Usually, these measures are aimed at the banking

    sector, given the reliance o companies in the euro area

    on nancing by banks (as opposed to nancing via

    capital markets). Some examples o these measures are

    the ollowing:

    Fixed rate, ull-allotment liquidity provision;

    Expansion o list o assets eligible as collateral;

    Longer-term liquidity provision;

    Liquidity provision in oreign currencies;

    Changes in the required reserve ratio;

    Outright purchases o specic debt securities.

  • 7/27/2019 Generation uro Students' Award 2013-2014 Teachers' Guide

    12/12

    SCHEDULE

    THE COMPETITION WILL TAKE PLACE DURING 2013/2014 AS FOLLOWS*:

    Round 1 Online quiz: 1 October to 15 November 2013

    Round 2 Essay: 22 November 2013 to 3 February 2014

    Round 3 National Final at the Central Bank o Ireland: 10 March 2014

    European Award Event at the European Central Bank: April 2014 (date tbc)

    CONTACT US

    We are more than happy to help you with

    any questions you may have over the course o the competition.

    Please email us at [email protected]

    or call(01) 224 6293

    Website:www.generationeuro.ie

    Facebook: www.acebook.com/GenerationEuroIreland

    * All dates are subject to change and are provided as a guide only