Market Information and Signaling in Central Bank Operations, or, How Often Should a Central Bank Intervene? »
Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 1997
Keywords: central banking, monetary policy implementation, open market operations, informational efficiency, central bank, money market, central banks
A central bank must decide on the frequency with which it will conduct open market operations and the variability in short-term money market that it will allow. It is shown how the optimal operating procedure balan...