Asymmetric Standing Facilities: An Unexploited Monetary Policy Tool

36 Pages Posted: 10 Mar 2010

Multiple version iconThere are 2 versions of this paper

Date Written: March 8, 2010

Abstract

This paper analyzes the role of standing facilities in the determination of the demand for reserves in the overnight money market. In particular, we study how the asymmetric nature of the deposit and lending facilities could be used as a powerful policy tool for the simultaneous control of prices and quantities in the market for daily funds.

Keywords: Monetary policy implementation, standing facilities, overnight interest rates, fine tuning operations

JEL Classification: E52, E58, E43

Suggested Citation

Perez-Quiros, Gabriel and Rodríguez Mendizábal, Hugo, Asymmetric Standing Facilities: An Unexploited Monetary Policy Tool (March 8, 2010). Banco de Espana Working Paper No. 1004, Available at SSRN: https://ssrn.com/abstract=1566809 or http://dx.doi.org/10.2139/ssrn.1566809

Gabriel Perez-Quiros (Contact Author)

Banco de España ( email )

Madrid 28014
Spain

Hugo Rodríguez Mendizábal

Institut d'Anàlisi Econòmica (CSIC) ( email )

UAB Campus
E-08193 Bellaterra
Spain

HOME PAGE: http://rodriguez.iae-csic.org/

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