Comparative Statics of Central Bank Liquidity Management : Some Insights

The paper demonstrates the efficacy of liquidity management through both the rate and quantum channels. Using the concepts of autonomous and discretionary liquidity, the paper derives the optimal policy mix of instruments which can be used for stabilizing the price of liquidity. For effective liquid...

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Bibliographic Details
Published in:Economics research international 2011-01, Vol.2011 (2011), p.1-7
Main Authors: Bhattacharyya, Indranil, Sahoo, Satyananda
Format: Article
Language:English
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Summary:The paper demonstrates the efficacy of liquidity management through both the rate and quantum channels. Using the concepts of autonomous and discretionary liquidity, the paper derives the optimal policy mix of instruments which can be used for stabilizing the price of liquidity. For effective liquidity management, the sufficient condition highlighted in the paper has important implications for developing market-related monetary policy instruments, particularly in emerging market economies.
ISSN:2090-2123
2090-2131
DOI:10.1155/2011/930672