Arbeitspapier

Why do central banks make public announcements of open market operations?

Central banks make public the results of open market operations (OMOs), which they use to adjust the liquidity available to the financial system to maintain the short-term borrowing rate in the range compatible with achieving their monetary policy objectives. This paper shows that such announcements are costly because they moderate the impact of changes in supply achieved through OMOs. Nevertheless, communication of OMOs is desirable because it improves the transparency of the funding market, which makes the price of liquidity - a key input into economic decision making - more reflective of underlying demand and supply of liquidity.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Staff Working Paper ; No. 2020-35

Klassifikation
Wirtschaft
Incomplete Markets
Central Banks and Their Policies
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Thema
Central bank research
Monetary policy implementation

Ereignis
Geistige Schöpfung
(wer)
Bulusu, Narayan
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2020

DOI
doi:10.34989/swp-2020-35
Handle
Letzte Aktualisierung
20.09.2024, 08:22 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Bulusu, Narayan
  • Bank of Canada

Entstanden

  • 2020

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