Toward a Framework for Systemic Liquidity Policy

Author/Editor:

J. Kimball Hobbs ; Claudia H Dziobek ; Dewitt D Marston

Publication Date:

March 1, 2000

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

International policy efforts to strengthen financial systems have highlighted the role of liquidity. This paper explores a framework to assess arrangements for market liquidity and lays out elements of systemic liquidity policy. Robust arrangements for liquidity provide confidence to market participants that liquidity can be mobilized on demand in a predictable and transparent manner. These are crucial to resilience and effective monetary operations. Arrangements include several prudential and institutional elements and national authorities have an important role in promoting their adoption. A survey of 14 countries and two in-depth studies of Mexico and Argentina are included for illustration.

Series:

Working Paper No. 2000/034

Subject:

Asset and liability management Banking Commercial banks Currencies Deposit insurance Financial institutions Infrastructure Liquidity Liquidity management Money National accounts

English

Publication Date:

March 1, 2000

ISBN/ISSN:

9781451845259/1018-5941

Stock No:

WPIEA0342000

Pages:

40

Please address any questions about this title to publications@imf.org