Transformation of Markets and Policy Instruments for Open Market Operations

December 1, 1995

Preview Citation

Format: Chicago

S. H. Axilrod Transformation of Markets and Policy Instruments for Open Market Operations, (USA: International Monetary Fund, 1995) accessed November 21, 2024

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

As developing countries and economies in transition have relied on deregulated, competitive markets to spur growth, their central banks have shifted toward using open market operations as a tool of monetary policy. To be most effective, such operations require supportive changes in other policy instruments (reserve requirements, discount window), a competitive banking system and securities market, and adaptation of particular open market or market-type instruments used to the stage of, and potential for, market development. The paper assesses options available to a central bank for encouraging a competitive market architecture and designing instruments for implementation of open market operations.

Subject: Banking, Central banks, Financial institutions, Financial markets, Government securities, Monetary base, Money, Money markets, Open market operations, Securities markets

Keywords: Active market, Commercial paper, Discount window, Excess reserves, Government securities, Market development, Market instrument, Market-type operation, Monetary base, Money markets, Open market operations, Securities markets, WP

Publication Details

Pages:

98
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1995/146
Stock No:

WPIEA1461995
ISBN:

9781451856590
ISSN:

1018-5941

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