Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Monetary and Exchange Affairs Department.
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| ISBN: | 1451892101
9781451892109
1281605719
9781281605719
146237025X
9781462370252
1452751307
9781452751306
9786613786401
6613786403
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| Notes: | Includes bibliographical references (page 25).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
English.
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
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| Summary: | Market-based instruments for the implementation of monetary policy have been adopted and refined during the last two decades in industrialized, developing and transition countries. Broad monetary aggregates are generally controlled only indirectly through intervention in money markets, and correspondingly central banks and governments are more willing to allow interest rates to be determined by fluctuating supply and demand conditions (reviews of recent experience are contained in Batten et al. (1990) for major industrial countries and Downes and Vaez-Zadeh (1991) for several developing countries). This shift in strategy is often justified by appeal to the deterioration in the effectiveness and equitableness of direct methods of control as financial markets develop, and to the improvement in general allocative efficiency that should result when economic agents can base their saving and investment decisions on freely determined market prices. Here, it will be argued that a market-based approach to monetary policy with more interest rate flexibility can in addition improve policy formulation and thus in itself enhance policy effectiveness.
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| Other form: | Print version: Hardy, Daniel C.L. Informational efficiency, interest rate variability, and central bank operations. [Washington, D.C.] : International Monetary Fund, Monetary and Exchange Affairs, ©1997
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