Monetary Operations and Central Bank Balance Sheets in a World of Limited Government Securities

December 1, 2001

Preview Citation

Format: Chicago

Mark Zelmer. Monetary Operations and Central Bank Balance Sheets in a World of Limited Government Securities, (USA: International Monetary Fund, 2001) accessed November 23, 2024

Disclaimer: This Policy Dicussion 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

The limited supply of government securities in some industrial countries has important ramifications for the operating techniques used by central banks to implement monetary policy, provide credit to the financial sector, and also for the assets they hold on their balance sheets. The paper reviews the salient facts regarding industrial central bank balance sheets and operating techniques, and outlines different options for dealing with a limited supply of government securities. The main conclusion is that central banks may wish to consider extending credit using a broad range of assets as collateral, and engage in outright transactions of securities guaranteed by financial institutions.

Subject: Banking, Central bank credit, Central banks, Collateral, Currency swaps, Financial institutions, Foreign exchange, Government securities, Securities

Keywords: Australia and New Zealand, Central bank, Central bank credit, Collateral, Currency swaps, Financial condition, Financial institution, Government securities, Market, Market operation, Monetary policy, PDP, Portfolio manager, Securities, Securities portfolio, Settlement system

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 2001/007
Stock No:

PPIEA0072001
ISBN:

9781451971583
ISSN:

1564-5193

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