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The interplay between money market development and changes in monetary policy operations in small European countries, 1980-2000

Forssbaeck, Jens LU and Oxelheim, Lars LU (2006) In Working Paper no. 669
Abstract
We study the interplay between money market development and changes in monetary policy operating procedures in 11 European countries from c. 1980 up to the launch of EMU. Aspects of money market development such as the size and structure of different market segments, and institutional and regulatory changes, are addressed. We recount and empirically examine the extent of reorientation of monetary policy instruments away from quantitative direct control instruments toward indirect market-based instruments. The process of financial deregulation is uniform across the countries. The path of money market development varies substantially, whereas changes in central bank instruments show both similarities and differences. We hypothesise a... (More)
We study the interplay between money market development and changes in monetary policy operating procedures in 11 European countries from c. 1980 up to the launch of EMU. Aspects of money market development such as the size and structure of different market segments, and institutional and regulatory changes, are addressed. We recount and empirically examine the extent of reorientation of monetary policy instruments away from quantitative direct control instruments toward indirect market-based instruments. The process of financial deregulation is uniform across the countries. The path of money market development varies substantially, whereas changes in central bank instruments show both similarities and differences. We hypothesise a relationship between the two processes and provide tentative evidence. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
in
Working Paper no. 669
issue
669
publisher
Research Institute of Industrial Economics, Stockholm
language
English
LU publication?
yes
id
23fe8e4e-09b8-4024-927a-d6c77a078d53 (old id 1387865)
date added to LUP
2009-04-20 12:27:27
date last changed
2016-04-16 08:58:44
@misc{23fe8e4e-09b8-4024-927a-d6c77a078d53,
  abstract     = {We study the interplay between money market development and changes in monetary policy operating procedures in 11 European countries from c. 1980 up to the launch of EMU. Aspects of money market development such as the size and structure of different market segments, and institutional and regulatory changes, are addressed. We recount and empirically examine the extent of reorientation of monetary policy instruments away from quantitative direct control instruments toward indirect market-based instruments. The process of financial deregulation is uniform across the countries. The path of money market development varies substantially, whereas changes in central bank instruments show both similarities and differences. We hypothesise a relationship between the two processes and provide tentative evidence.},
  author       = {Forssbaeck, Jens and Oxelheim, Lars},
  language     = {eng},
  number       = {669},
  publisher    = {ARRAY(0x76fe040)},
  series       = {Working Paper no. 669},
  title        = {The interplay between money market development and changes in monetary policy operations in small European countries, 1980-2000},
  year         = {2006},
}