Financial Sector Reforms and Monetary Policy

December 1, 1991

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Format: Chicago

Financial Sector Reforms and Monetary Policy, (USA: International Monetary Fund, 1991) accessed October 6, 2024

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

In recent years a number of countries have undertaken far-reaching reforms of their financial sectors. Generally speaking, financial sector reforms aim at achieving greater flexibility of interest rates, an enhanced role for market forces in credit allocation, increased independence for the central bank, and a deepening of money and securities markets. Such reforms, and the developments that follow, have important implications for the design and conduct of monetary policy. This paper provides an overview of the linkages between financial sector reforms and the monetary policy framework, focusing in particular on the objectives, instruments, and operating procedures of monetary policy.

Subject: Banking, Demand for money, Financial markets, Financial regulation and supervision, Financial sector reform, Monetary base, Monetary policy, Monetary policy instruments, Money, Money markets

Keywords: Bank interest interest rate, Credibility nexus, Credit rationing, Demand for money, Eastern Europe, Europe, Excess reserves, Financial sector reform, Interest rate, Interest rate liberalization, Interest rate structure, Interest rate volatility, Liberalization, Market, Monetary base, Monetary management, Monetary policy, Monetary policy instruments, Money markets, Money multiplier, Transmission mechanism, WP

Publication Details

Pages:

22
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/127
Stock No:

WPIEA1271991
ISBN:

9781451854947
ISSN:

1018-5941

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