The stabilization mechanism of ultra short-term interest rates in the context of Czech national bank's repo tenders
Bibliographic Data
| ID | 6109448 |
|---|---|
| Authors | Karel Brůna (0000-0003-3690-1364, corresponding author) |
| Year | 2005 |
| Volume | 53 |
| Issue | 4 |
| Pages | 459-476 |
| Publication date | 2005-08-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Politická ekonomie (JOURNAL) |
| Journal identifiers | ISSN: 0032-3233 • E-ISSN: 2336-8225 |
| Publisher | Prague University of Economics and Business (PUBLISHER • CZ) |
| DOI | 10.18267/j.polek.517 |
| OpenAlex | W2315811894 |
| Language | EN |
| Citations received | 6 |
| References cited | 12 |
Effectiveness of actual monetary policy depends on the ability of central banks to stabilize the fluctuations of overnight interest rates around their official policy rate. To ensure the functionality of the stabilization mechanism needs the successful balancing between bank's demand for reserves and central bank's supply of the reserves in interbank market. I discuss the main sources of temporal gaps between the demand for and the supply of the reserves and their impact on the volatility of overnight interest rates. In our theoretical explanation there is stressed the role of intertemporal substitution in fluctuation of demand for reserves. In the empirical part there is analysed the behaviour of overnight interest rates in the Czech interbank market (2001 - 2004) in the context of excess liquidity. Some structural changes in interbank market were found - undershooting of non-stability of excess liquidity and decline of overnight interest rates volatility due to new possibility of intraday credit
Call for bids · Central bank · Context (archaeology) · Economics · Excess reserves · Financial economics · Interbank lending market · Interest rate · Market liquidity · Monetary economics · Monetary policy · Open market operation · Overnight rate · Procurement · Reserve requirement · Volatility (finance) · European Monetary and Fiscal Policies · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
Effect of Monetary Intervention in the Frame of IS-LM Model with Dynamic Price Adjustment and Adaptive Expectations
Monetary policy and prediction of variability
The interest rate transmission mechanism and the management of interest margin in the context of Czech national bank disinflation policy
Monetary policy, trend inflation changes and volatility of interest rates relations
Central Bank ́s Foreign Exchange Reserves Accumulation and Dynamics of Banking System Liquidity Absorption
Monetary approach to inflation
| Citations per year | 0.3 |
|---|---|
| Citation span | 2006 - 2011 (6) |
| Highly cited | No |