Journal Article

The practice of central banking in other industrialized countries

Abstract: Central banks in larger industrialized countries increasingly favor market operations, the buying and selling of securities, over standing facilities, such as lending and deposit facilities, in conducting their monetary policies. In their market operations, foreign central banks most commonly trade securities issued or guaranteed by their governments and repurchase agreements that are backed by a variety of assets, including private securities and securities denominated in foreign currencies. Some also trade in securities that are issued by other governments or private securities that are guaranteed by governments or financial institutions. In some cases, these securities may be denominated in foreign currencies.

Keywords: Banks and banking, Central; Open market operations;

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: New England Economic Review

Publication Date: 2002

Issue: Q 2

Pages: 3-9