| Glossary of Monetary Instruments |
|
| Executive Summary |
|
| I. |
Overview |
|
| II. |
Country Experiences |
| |
A. |
Macroeconomic Conditions |
| |
B. |
Market Participation Limitations |
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C. |
Institutional Shortcomings |
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| III. |
Implications for Policy Design and Coordination |
| |
A. |
Selecting a Monetary Framework: Prices
versus Quantities |
| |
B. |
Choice of Monetary Instruments |
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| IV. |
Agenda for Actions to Enhance Monetary
Policy Effectiveness |
| |
A. |
Curtailing Fiscal Dominance |
| |
B. |
Dealing with Structural Liquidity Surplus |
| |
C. |
Establishing Efficient Money Markets |
| |
D. |
Strengthening Financial Market Infrastructure |
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| V. |
Sequencing of Reforms |
|
| VI. |
Implications for Fund Operations |
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| References |
|
| Tables |
| 1. |
Use of Monetary Instruments in a Sample
of Countries |
| 2. |
Technical Assistance in Monetary Policy
Implementation, 1999-2004 |
| 3. |
Stylized Structure of Central Bank Interest
Rates |
| 4. |
Functions of Monetary Instruments at Stage
Two and Three |
|
| Figures |
| 1. |
Monetary Policy Implementation at Different
Stages of Market Development |
|
| Boxes |
| 1. |
The Conduct of Monetary Policy |
| 2. |
Country Examples of Fiscal Dominance |
| 3. |
Country Examples of Structural Liquidity
Surplus |
| 4. |
Country Examples of Market Participation
and Institutional Limitations |
| 5. |
Liquidity Forecasting Frameworks |
| 6. |
Initial Conditions for Inflation Targeting |
| 7. |
Successful Experiences in Small Countries |
| 8. |
Typology of Money Market Operations |
| 9. |
Fostering Fiscal Discipline in the Eastern
Caribbean Currency Union |
| 10. |
Measures to Limit the Distortionary Effects
of Rules-Based Instruments |
| 11. |
Monetary Instruments for Small Countries |
| 12. |
Synergies Between Fund Operations: Selected
Country Experiences |
|
| Appendix |
| Monetary Policy Implementation
in Small Countries |
