Market-Based Systems of Monetary Control in Developing Countries: Operating Procedures and Related Issues

April 1, 1991

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

This paper reviews issues in the development of a market-based system of monetary control in developing countries. It focuses on the appropriate sequencing of financial reform that would facilitate the transition toward a market-based system and measures required to strengthen the effectiveness of market-based operations. The paper also assesses the effects of financial reform on the demand for money function and discusses the implications for policy formulation and implementation.

Subject: Banking, Central banks, Demand for money, Financial institutions, Government securities, Monetary base, Money, Open market operations, Treasury bills and bonds

Keywords: Asia and Pacific, central bank, Demand for money, excess reserves, financial market development, Government securities, interest rate, market, market condition, Monetary base, net claim, Open market operations, opportunity cost, repurchase market, sound treasury bill market, treasury bill, treasury bill auction, treasury bill market, Treasury bills and bonds, WP

Pages:
30
Volume:
1991
DOI:
https://doi.org/10.5089/9781451845877.001
Issue:
040
Series:
Working Paper No. 1991/040
Stock No:
WPIEA0401991
ISBN:
9781451845877
ISSN:
1018-5941

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