Asymmetric Standing Facilities: An Unexploited Monetary Policy Tool

32 Pages Posted: 19 May 2010

Multiple version iconThere are 2 versions of this paper

Date Written: April 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: fine tuning operations, Monetary policy implementation, overnight interest rates, standing facilities

JEL Classification: E43, E52, E58

Suggested Citation

Perez-Quiros, Gabriel and Rodríguez Mendizábal, Hugo, Asymmetric Standing Facilities: An Unexploited Monetary Policy Tool (April 2010). CEPR Discussion Paper No. DP7789, Available at SSRN: https://ssrn.com/abstract=1611485

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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