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Transformations to open market operations : developing economies and emerging markets /

By buying or selling bonds, bills and other financial instruments in the open market, a central bank can expand or contract the amount of reserves in the banking system and can ultimately influence the country's money supply. When the central bank sells such instruments it absorbs money from th...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autor principal: Axilrod, S. H. (Autor)
Otros Autores: Wilson, Neil (Editor )
Formato: Electrónico eBook
Idioma:Inglés
Publicado: Washington, D.C. : International Monetary Fund, ©1996.
Colección:Economic issues (International Monetary Fund) ; 5.
Temas:
Acceso en línea:Texto completo

MARC

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264 4 |c ©1996 
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520 0 |a By buying or selling bonds, bills and other financial instruments in the open market, a central bank can expand or contract the amount of reserves in the banking system and can ultimately influence the country's money supply. When the central bank sells such instruments it absorbs money from the system. Conversely, when it buys it injects money into the system. This method of trading in the market to control the money supply is called open market operations. Open market operations are the major instruments of monetary control in industrial countries and are becoming important in developing countries and countries in transition. This paper shows how open market operations are related to other monetary instruments, discusses the role of the market and of the central bank, and takes a brief, practical look at howopen market operations are actually conducted. 
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