And the central bank can extend its influence over term credit by lengthening the maturity of its lending operations. 2  See, Friedman, M. and Schwartz, A.J. (1982), Monetary Trends in the United States and the United Kingdom: their Relation to Income, Prices, and Interest Rates, University of Chicago Press, Chicago, pp.
1867–1975, and Meltzer, A.H. (1999), “Commentary: monetary policy at zero inflation”, in New Challenges for Monetary Policy: a Symposium Sponsored by the Federal Reserve Bank of Kansas City, Federal Reserve Bank of Kansas City. BIS central bankers’ speeches  3  One notable application of this logic was the 12-month refinancing operation enacted in December 2009.