Toward a Framework for Systemic Liquidity Policy

Author/Editor: J. Kimball Hobbs ; Claudia Helene Dziobek ; David Marston
Publication Date: March 01, 2000
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: International policy efforts to strengthen financial systems have highlighted the role of liquidity. This paper explores a framework to assess arrangements for market liquidity and lays out elements of systemic liquidity policy. Robust arrangements for liquidity provide confidence to market participants that liquidity can be mobilized on demand in a predictable and transparent manner. These are crucial to resilience and effective monetary operations. Arrangements include several prudential and institutional elements and national authorities have an important role in promoting their adoption. A survey of 14 countries and two in-depth studies of Mexico and Argentina are included for illustration.
Series: Working Paper No. 00/34
Subject(s): Argentina | Financial systems | Liquidity | Mexico

Publication Date: March 01, 2000
ISBN/ISSN: 9781451845259/1018-5941 Format: Paper
Stock No: WPIEA0342000 Pages: 40
US$15.00 (Academic Rate:
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