Hidden Bibliographic Details
| Other authors / contributors: | International Monetary Fund. Monetary and Capital Markets Department, issuing body.
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| ISBN: | 9781463959371
1463959370
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| Notes: | At head of title: Monetary and Capital Markets Departments.
Title from PDF title page (IMF Web site, viewed February 7, 2012).
"January 2012."
Includes bibliographical references.
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| Summary: | This paper discusses the challenging question of whether central banks should use treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that treasury bills are the first best option especially because positive externalities for the financial sector and the rest of the economy. However, the main considerations in the choice should be: (i) operational independence for the central bank; (ii) market development; and (iii) the strengthening of the transmission of monetary policy impulses.
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| Other form: | Print version: Nyawata, Obert. Treasury Bills and/or Central Bank Bills for Absorbing Surplus Liquidity: The Main Considerations. Washington : International Monetary Fund, ©2012 9781463933838
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