Collateral and Monetary Policy

 
Author/Editor: Manmohan Singh
 
Publication Date: August 28, 2013
 
Electronic Access: Free Full text (PDF file size is 1,073KB).
Use the free Adobe Acrobat Reader to view this PDF file

 
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: Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled spring, the larger the quantitative easing (QE) efforts, the longer the central banks will impact the collateral market and associated repo rate. This may have monetary policy and financial stability implications since the repo rates map the financial landscape that straddles the bank/nonbank nexus.
 
Series: Working Paper No. 13/186
Subject(s): Monetary policy | Money markets | Central banks

 
English
Publication Date: August 28, 2013
ISBN/ISSN: 9781484384916/2227-8885 Format: Paper
Stock No: WPIEA2013186 Pages: 17
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
Please address any questions about this title to publications@imf.org