Refinance Instruments: Lessons From their Use in Some Industrialized Countries

May 1, 1994

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

Many central banks around the world are gradually shifting from a system of direct controls towards the implementation of monetary policy through market-oriented instruments, including refinance facilities. This paper reviews the use of refinance instruments in a sample of industrialized countries, and discusses how central banks use them to influence short-term interest rates and to manage banks’ reserves. Some lessons are suggested for their implementation in developing countries or economies in transition.

Subject: Banking, Credit, Financial derivatives, Financial institutions, Financial markets, Financial services, Market interest rates, Monetary policy, Money, Money markets, Standing facilities

Keywords: call money rate, central bank., Credit, credit auction, discount rate, discount window, Financial derivatives, Global, lower bound, Market interest rates, market rate, monetary management, Money markets, Standing facilities, uniform rate auction, WP

Pages:
32
Volume:
1994
DOI:
https://doi.org/10.5089/9781451847048.001
Issue:
051
Series:
Working Paper No. 1994/051
Stock No:
WPIEA0511994
ISBN:
9781451847048
ISSN:
1018-5941

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