Front Matter Page
Monetary and Exchange Affairs Department
Contents
I. Introduction: Trends and Issues
II. The Demand For Bank Reserves
A. Payments System Developments and the Demand for Intraday Reserves
B. Monetary Operations and the Demand for Overnight Reserves
C. Simple Model Of Demand for Bank Reserves
III. Looking Ahead: Conducting Monetary Policy Without Base Money
A. Operational Targeting
B. Inflation Targeting
IV. Other Central Bank Functions
A. Central Banks’ Balance Sheet in a Paradigm without Base Money
B. Lending of Last Resort
C. The Case of an Open Economy: Foreign Exchange Market Interventions
V. Some Lessons For Present-Day Central Banking
A. What Makes a Central Bank Unique?
B. Monetary Instruments
C. Coordination Between Public Debt and Monetary Issues
D. Currency Boards and The Monetary Approach to the Balance of Payments
Text Tables
1. Turnover in Selected Large-Value Payment Systems
2. Turnover in Securities Settlement Systems
3. Use of Various Cashless Payment Instruments
4. Relative Importance of Transfers (Credits and Direct Debits) as Means of Cashless Payment Instruments
5. Banks Reserves Held at the Central Bank
Figures
1. The Velocity of Reserve Money
2. Money Multiplier
3. Bank Reserves
4. Currency Held by the Public
5. United States: Bank Holdings of Treasury Securities and the Size of the Repo Market
6. European Union: Overnight Interest Rate Volatility and the Level of Reserves
7. Central Bank Balance Sheets
References