Transformations to open market operations
Subtitle: Developing economies and emerging markets (Economic issues)
Publisher: International Monetary Fund
Published: 1996
Language: eng
Format: Unknown Binding
Number of pages: 17
ISBN-13: 9781557756275
Subjects: Mercado de capitales; Open market operations
Description: By buying or selling bonds, bills and other financial instruments in the open market, a central bank can expand or contract the amount of reserves in the banking system and can ultimately influence the country's money supply. When the central bank sells such instruments it absorbs money from the system. Conversely, when it buys it injects money into the system. This method of trading in the market to control the money supply is called open market operations.