@techreport{Bindseil2004Over,
abstract = {Open market operations play a key role in allocating central bank funds to the banking
system and thereby to steer short-term interest rates in line with the stance of monetary
policy. Many central banks apply so-called \textquotedblleft{}fixed rate tender\textquotedblright{} auctions in their open market
operations. This note presents, on the basis of a survey of central bank experience, a model
of bidding in such tenders. In their conduct of fixed rate tenders, many central banks faced
specifically an \textquotedblleft{}under\textquotedblright{}- and an \textquotedblleft{}overbidding\textquotedblright{} problem. These phenomena are revisited in the
light of the proposed model and the more general question of the optimal tender procedure
and allotment policy of central banks is addressed.},
address = {Bonn},
author = {Ulrich Bindseil},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {D84; E43; E52; 330; open market operations; tender procedures; central bank liquidity management; Offenmarktpolitik; Zinspolitik; Auktion; Bankenliquidit\"{a}t; Theorie; EU-Staaten},
language = {eng},
number = {B 03-2004},
publisher = {ZEI},
title = {Over- and underbidding in central bank open market operations conducted as fixed rate tender},
type = {ZEI working paper},
url = {http://hdl.handle.net/10419/39640},
year = {2004}
}
