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Varieties of monetary operating procedures: balancing monetary objectives with market efficiency

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  • Joseph Bisignano

Abstract

This paper reviews some of the issues confronting central banks in their choice of monetary operating instruments and techniques. As a result of efforts by governments to improve efficiency in financial systems, together with developments in financial information, computation and communication technology, central banks are having to increasingly rely on flexible operating instruments and techniques which convey in a convincing manner to market participants their near-term objectives. This has contributed to the relative decline in the importance of standing credit facilities and the greater reliance on flexible open market intervention techniques. Policy signalling and disclosure have increasingly become essential elements in short-term monetary management.

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  • Joseph Bisignano, 1996. "Varieties of monetary operating procedures: balancing monetary objectives with market efficiency," BIS Working Papers 35, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:35
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    References listed on IDEAS

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    2. Richard W. Kopcke, 2002. "The practice of central banking in other industrialized countries," New England Economic Review, Federal Reserve Bank of Boston, issue Q 2, pages 3-9.
    3. Eric Monnet & Miklos Vari, 2023. "A Dilemma between Liquidity Regulation and Monetary Policy: Some History and Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 55(4), pages 915-944, June.
    4. Aleksander Berentsen, 1998. "Monetary Policy Implications of Digital Money," Kyklos, Wiley Blackwell, vol. 51(1), pages 89-118, February.
    5. Gordon H. Sellon & Stuart E. Weiner, 1996. "Monetary policy without reserve requirements: analytical issues," Economic Review, Federal Reserve Bank of Kansas City, vol. 81(Q IV), pages 5-24.
    6. Eric Monnet & Miklos Vari, 2019. "Liquidity Ratios as Monetary Policy Tools: Some Historical Lessons for Macroprudential Policy," IMF Working Papers 2019/176, International Monetary Fund.
    7. Barabás, Gyula & Hamecz, István, 1997. "Tőkebeáramlás, sterilizáció és pénzmennyiség, II. rész [Capital inflow, sterilization and money supply. Part II]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 757-781.
    8. John Hawkins, 2005. "Globalisation and monetary operations in emerging economies," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation and monetary policy in emerging markets, volume 23, pages 59-80, Bank for International Settlements.
    9. Machava, Agostinho & Brännäs, Kurt, 2015. "Mozambican Monetary Policy and the Yield Curve of Treasury Bills - An Empirical Study," Umeå Economic Studies 918, Umeå University, Department of Economics.
    10. Berensmann, Kathrin, 2003. "Monetary policy under currency board arrangements: An necessary flexibility for transition countries?," W.E.P. - Würzburg Economic Papers 44, University of Würzburg, Department of Economics.
    11. Barabás, Gyula & Hamecz, István, 1997. "Tőkebeáramlás, sterilizáció és pénzmennyiség, I. rész [Capital inflow, sterilization and money supply]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 653-672.

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