The Payment System and Monetary Policy

May 1, 1998

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Omotunde E. G. Johnson The Payment System and Monetary Policy, (USA: International Monetary Fund, 1998) accessed November 21, 2024

Summary

Achieving the primary objective of price stability without unduly compromising the operational efficiency of the payment system constitutes a major problem for central banks. Routine monetary policy presumes a given institutional and technological framework, including aspects of the payment system. Such a monetary policy concerns itself with intraday and interday credit for payments settlements and with float. Liquidity shocks and panics sometimes pose an additional challenge. In recent years, major and rapid institutional and technological changes in the payment system (mainly to lower risks and augment operational efficiency) have affected the monetary policy decision-making process, particularly in the short run.

Subject: Banking, Central bank credit, Central banks, Credit, Financial markets, Large value payment systems, Monetary operations, Money, Payment systems

Keywords: A. central bank credit Policy, Central bank, Central bank credit, Central bank credit policy, Credit, Credit facilities, Global, Large value payment systems, Market, Market operation, Monetary operations, Monetary policy, Monetary policy point of view, Monetary policy transmission mechanism, Money multiplier, Payment, Payment settlement, Payment system, Payment system reform, Payment systems, Payments organization, PDP, Routine monetary policy, Settlement purpose

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Policy Discussion Paper No. 1998/004
Stock No:

PPIEA0041998
ISBN:

9781451973389
ISSN:

1564-5193

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