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Price-Making and Last-Resort Market-Making in Gilts

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  • William Allen

Abstract

This paper aims to clarify aspects of official last-resort market making in government securities markets, namely that it is always an act of monetary policy and debt management, as well as of financial stability policy, and that its sole objective is to find a price at which two-way trading can re-start in a dysfunctional market.

Suggested Citation

  • William Allen, 2024. "Price-Making and Last-Resort Market-Making in Gilts," National Institute of Economic and Social Research (NIESR) Policy Papers 39, National Institute of Economic and Social Research.
    • Handle: RePEc:nsr:niesrp:39
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    References listed on IDEAS

    as
    1. Paul Tucker, 2014. "The lender of last resort and modern central banking: principles and reconstruction," BIS Papers chapters, in: Bank for International Settlements (ed.), Re-thinking the lender of last resort, volume 79, pages 10-42, Bank for International Settlements.
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