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Asymmetric standing facilities: an unexploited monetary policy tool

Author

Listed:
  • Gabriel Perez-Quiros

    (Banco de España)

  • Hugo Rodríguez Mendizábal

    (Instituto de Análisis Económico (CSIC))

Abstract

This paper analyzes the role of standing facilities in the determination of the demand for reserves in the overnight money market. In particular, we study how the asymmetric nature of the deposit and lending facilities could be used as a powerful policy tool for the simultaneous control of prices and quantities in the market for daily funds.

Suggested Citation

  • Gabriel Perez-Quiros & Hugo Rodríguez Mendizábal, 2010. "Asymmetric standing facilities: an unexploited monetary policy tool," Working Papers 1004, Banco de España.
    • Handle: RePEc:bde:wpaper:1004
    as

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    References listed on IDEAS

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    Citations

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    Cited by:

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    2. Stähler, Nikolai & Thomas, Carlos, 2012. "FiMod — A DSGE model for fiscal policy simulations," Economic Modelling, Elsevier, vol. 29(2), pages 239-261.
    3. Raquel Carrasco & Juan F. Jimeno & A. Carolina Ortega, 2011. "Accounting for changes in the Spanish wage distribution: the role of employment Composition effects," Working Papers 1120, Banco de España.
    4. Olympia Bover, 2010. "Housing purchases and the dynamics of housing wealth," Working Papers 1036, Banco de España.
    5. Francisco De Castro & Javier J. Pérez & Marta Rodríguez‐Vives, 2013. "Fiscal Data Revisions in Europe," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(6), pages 1187-1209, September.
    6. Hugo Rodríguez Mendizábal, 2020. "Narrow Banking with Modern Depository Institutions: Is There a Reason to Panic?," International Journal of Central Banking, International Journal of Central Banking, vol. 16(4), pages 145-197, September.
    7. Moral-Benito, Enrique, 2010. "Model averaging in economics," MPRA Paper 26047, University Library of Munich, Germany.
    8. Agustín Maravall Herrero & Domingo Pérez Cañete, 2011. "Applying and interpreting model-based seasonal adjustment. The euro-area industrial production series," Working Papers 1116, Banco de España.
    9. Carla Soares & Paulo M. M. Rodrigues, 2013. "Determinants of the EONIA Spread and the Financial Crisis," Manchester School, University of Manchester, vol. 81, pages 82-110, October.
    10. Carla Soares & Paulo M.M. Rodrigues, 2010. "Determinants of the EONIA spread and the financial turmoil of 2007-2009," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    11. Isabel Argimón & Jenifer Ruiz, 2010. "The effects of national discretions on banks," Working Papers 1029, Banco de España.
    12. Francesca Viani, 2011. "International financial flows, real exchange rates and cross-border insurance," Working Papers 1038, Banco de España.
    13. Ronald Heijmans & Lola Hernández & Richard Heuver, 2013. "Determinants of the rate of the Dutch unsecured overnight money market," DNB Working Papers 374, Netherlands Central Bank, Research Department.
    14. Carmen Martínez-Carrascal & Julian von Landesberger, 2010. "Explaining the demand for money by non-financial corporations in the euro area: A macro and a micro view," Working Papers 1033, Banco de España.
    15. Enrique Moral-Benito, 2011. "Dynamic panels with predetermined regressors: likelihood-based estimation and Bayesian averaging with an application to cross-country growth," Working Papers 1109, Banco de España.

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    More about this item

    Keywords

    Monetary policy implementation; standing facilities; overnight interest rates; fine tuning operations;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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