Abstract

Changed framework expecially the volume and flexibility of international capital flows made high demands on the Federal Reserve Bank (Deutsche Bundesbank) concerning the control of the money market and called for a modification of the monetary management. Basing on the respective target of the money supply, the Federal Reserve Bank has to produce and maintain such a field of tension which fits to the target of money supply. Thereby some various monetary instruments came to use, which in their entirety meet the requirements of the precise control and of the coarse control and which, according to the respective demand of control, distinguish between their flexibility, reversibility and their controlling measures. A priority for measures relating to interest rate or to liquidity is not to be constituted. This “pluralistic” conception of control, successful in the former experiences, is based on the prevailing legal and institutional framework and therefore differs from “monistic” models policy.