Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212039 
Authors: 
Year of Publication: 
2006
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 14/2006
Publisher: 
Bank of Finland, Helsinki
Abstract: 
The emergence of the New Consensus in monetary policy has been followed by a renewal of interest in central banks' operating procedures, and specifically in the role of open market operations. There is a general view that overnight interest rates are most effectively controlled by standing or discount window facilities, rather than open market operations, and this view will probably now extend also to lender-of-last-resort intervention.The paper argues that this reduced role for open market operations is only in the context of controlling overnight rates of interest.In spite of the emphasis on control of overnight interest rates, medium and long-term interest rates remain the crucial instruments in the monetary transmission mechanism.Longer-term interest rates are susceptible to influence by open market operations, and their importance grows with financial development.
Subjects: 
central banks
monetary policy
open market operations
JEL: 
E52
E58
Persistent Identifier of the first edition: 
ISBN: 
952-462-286-6
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.