Redefining the money market

2017-12-17 17:21:06 Viewed: 223 Downloads: 63
  • Redefining the money market

      AP Faure

     Publisher:

    Pub: 2017-12-17 17:21:06

    Email it to me(Requires login) Download this PDF file
  • The money market has traditionally been defined as the market for marketable short-term securities. It has deep historical roots. Today, it is not an illuminating definition. The genesis of interest rates, which is the quintessence of monetary policy implementation, does not originate in market for marketable short-term securities. It is found in the non-marketable interbank debt market, and spreads out from there. Therefore, the logical starting point in defining the money market is that it embraces all short-term lending and borrowing, direct and indirect via the financial intermediaries. In addition, money creation, that is, new bank lending and its corollary bank deposit creation, is firmly in the province on the money market. Given these, we offer an alternative definition of the money market.


    JEL Classification: E44, E50

    Email it to me(Requires login) Download this PDF file
  • Email it to me(Requires login) Download this PDF file

  • References are not ready for this file yet, please refer to reference from the PDF file

  • Keywords

    money market, monetary policy, money, financial markets


Other Informations

Top