Transformation of Markets and Policy Instruments for Open Market Operations
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.
Series:
Working Paper No. 1995/146
Subject:
Banking Central banks Financial institutions Financial markets Government securities Monetary base Money Money markets Open market operations Securities markets
English
Publication Date:
December 1, 1995
ISBN/ISSN:
9781451856590/1018-5941
Stock No:
WPIEA1461995
Pages:
98
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