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The Liquidity Management of the Banking Sector and the Short-Term Money Market Interest Rates
[Управление Ликвидностью Банковского Сектора И Краткосрочной Процентной Ставкой Денежного Рынка]

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  • Morgunov, V.I. (Моргунов, В.И.)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

In the modern world the most common method of monetary policy implementation is to control short-term money market interest rates. This paper discusses methodological and theoretical foundations of such policy, its instruments and procedures. The focus is on the method of monetary policy, that is called a symmetric interest rate corridor. The author investigates the role of open market operations and standing facilities, analyses the problem of forecasting the liquidity needs of the banking sector. The experience of the Bank of Russia in the management of short-term money market interest rates is analyzed on the base of modern theoretical concepts.

Suggested Citation

  • Morgunov, V.I. (Моргунов, В.И.), 2016. "The Liquidity Management of the Banking Sector and the Short-Term Money Market Interest Rates [Управление Ликвидностью Банковского Сектора И Краткосрочной Процентной Ставкой Денежного Рынка]," Working Papers 21311, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:21311
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    monetary policy; short-term interest rates; money market; symmetric interest rate corridor;
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