Monetary Policy Implementation : Operational Issues for Countries with Evolving Monetary Policy Frameworks /

This paper discusses operational issues for countries that want to reform their monetary policy frameworks. It argues that stabilizing short-term interest rates on a day-to-day basis has significant advantages, and thus that short-term interest rates, not reserve money, in most cases should be the d...

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Podrobná bibliografie
Hlavní autor: Maehle, Nils
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2020.
Edice:IMF Working Papers; Working Paper ; No. 2020/026
On-line přístup:Full text available on IMF
Popis
Shrnutí:This paper discusses operational issues for countries that want to reform their monetary policy frameworks. It argues that stabilizing short-term interest rates on a day-to-day basis has significant advantages, and thus that short-term interest rates, not reserve money, in most cases should be the daily operating target, including for countries relying on a money targeting policy strategy. The paper discusses how a policy formulation framework based on monetary aggregates can be combined with an operational framework that ensures more stable and predictable short-term rates to enhance policy transmission. It also discusses how to best configure an interest-rate-based operational framework when markets are underdeveloped and liqudity management capacity is weak.
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Fyzický popis:1 online resource (57 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students