Market-Based Systems of Monetary Control in Developing Countries

Market-Based Systems of Monetary Control in Developing Countries
Author: Mr.Chorng-Huey Wong
Publisher: International Monetary Fund
Total Pages: 30
Release: 1991-04-01
Genre: Business & Economics
ISBN: 1451845871

This paper reviews issues in the development of a market-based system of monetary control in developing countries. It focuses on the appropriate sequencing of financial reform that would facilitate the transition toward a market-based system and measures required to strengthen the effectiveness of market-based operations. The paper also assesses the effects of financial reform on the demand for money function and discusses the implications for policy formulation and implementation.

Sequencing Financial Sector Reforms

Sequencing Financial Sector Reforms
Author: International Monetary Fund
Publisher: International Monetary Fund
Total Pages: 412
Release: 1991-03-15
Genre: Business & Economics
ISBN: 9781557757791

Financial sector liberalization can spur economic growth and development, but reforms to liberalize the financial sector can also entail risks if they are not properly designed and implemented. One of the central questions for countries reforming their financial systems is how to sequence the reforms so as to maximize the benefits of liberalization and contain its risks. Edited by R. Barry Johnston and V. Sundararajan of the IMF's Monetary and Exchange Affairs Department, this book attempts to answer this and related questions by drawing lessons from financial sector reforms in selected countries. In particular, the book surveys financial sector reforms in Indonesia, Thailand, and Korea between the mid-1980s and mid-1990s.

The Transmission Mechanism for Monetary Policy in Developing Countries

The Transmission Mechanism for Monetary Policy in Developing Countries
Author: Mr.Peter Montiel
Publisher: International Monetary Fund
Total Pages: 30
Release: 1990-05-01
Genre: Business & Economics
ISBN: 1451972806

In many developing countries the financial system is characterized by the absence of organized markets for securities and equities, by capital controls, and by legal ceilings on bank borrowing and lending rates, a situation which gives rise to parallel markets for foreign exchange and informal loan markets. This paper analyzes how changes in monetary policy instruments (bank credit, administered interest rates, required reserve ratios, and intervention in the parallel exchange market) are transmitted to domestic aggregate demand in a financially-repressed economy. Such an analysis is necessary to understand how the move to a more market-oriented system would affect the economy in the short run.

Money and Monetary Policy in Less Developed Countries

Money and Monetary Policy in Less Developed Countries
Author: Warren L. Coats
Publisher: Elsevier
Total Pages: 842
Release: 2014-05-19
Genre: Business & Economics
ISBN: 148315730X

Money and Monetary Policy in Less Developed Countries: A Survey of Issues and Evidence focuses on monetary policy, the financial intermediation process, and the role of money in economic development in less developed countries (LDCs). Topics covered include financial development and economic growth in underdeveloped countries; instruments and techniques used in the implementation of monetary policy: and econometric policy models. This book is comprised of 46 chapters and begins with a discussion on the main lines of thought in the field of money and monetary policy in LDCs, with emphasis on the significant empirical results. The reader is then introduced to the role of money in the development process; production and monetization in the subsistence sector; some aspects of financial policies and central banking in developing countries; and the efficacy of monetary rules for LDCs. The subsequent chapters explore monetary policy instruments such as interest rates, credit controls, and exchange rates; credit policy and the balance of payments in developing countries; and price and output behavior in the Indian economy from 1951 to 1973. A semiannual macroeconometric model of the Philippines for the period 1967-1976 is also described. This monograph will be a valuable resource for economists, economic policymakers, and central bankers as well as students.

Monetary Policy Implementation

Monetary Policy Implementation
Author: Mr.Rodolfo Maino
Publisher: International Monetary Fund
Total Pages: 43
Release: 2007-01-01
Genre: Business & Economics
ISBN: 1451865716

Since the early 1990s, the IMF has been advising countries to shift to the use of indirect instruments for executing monetary policy. This paper provides information about a monetary policy instruments database, maintained by the Monetary and Capital Markets Department of the IMF. We offer an overview of the information contained in the database in the form of comparative summary tables and graphs to illustrate the use of monetary policy instruments by groups of countries (developing, emerging market and developed countries). The main trend that can be identified from the database information is the increasing reliance on money market operations for monetary policy implementation. We emphasize the relevance and usefulness of the data collected through periodic surveys of central banks, for general descriptive and analytical purposes.

Monetary Instruments and their Use During the Transition From a Centrally Planned to a Market Economy

Monetary Instruments and their Use During the Transition From a Centrally Planned to a Market Economy
Author: Mr.Paul Louis Ceriel Hilbers
Publisher: International Monetary Fund
Total Pages: 34
Release: 1993-11-01
Genre: Business & Economics
ISBN: 1451850948

This paper discusses different instruments of monetary policy, and in particular the choice between direct and indirect instruments. It identifies the main characteristics of a country’s financial system that should be considered in selecting monetary instruments, and analyzes how these characteristics should influence that selection in countries that are progressing from a state-controlled to a market economy. The characteristics of the financial system during the initial stage of the transition sometimes favor relatively direct instruments. At this stage market-based variants of direct instruments may combine the necessary effectiveness in reducing monetary expansion with the need to introduce and stimulate competition in the financial markets. During this stage indirect instruments can be developed and tested (“belt and braces” approach). In later stages, as experience is gained, these indirect instruments can gradually replace the more direct controls.

Monetary Policy in Developing Countries

Monetary Policy in Developing Countries
Author: Overseas Development Institute (London, England)
Publisher: Psychology Press
Total Pages: 388
Release: 1993
Genre: Monetary policy
ISBN: 9780415088220

This assesses the role of monetary policy in developing countries lacking sophisticated financial sectors. Studies of six countries analyse the interaction between these factors involved and development

Monetary Economics in Developing Countries

Monetary Economics in Developing Countries
Author: Subrata Ghatak
Publisher: Palgrave
Total Pages: 296
Release: 1995
Genre: Business & Economics
ISBN:

This book highlights the basic principles of monetary economics and their application to developing countries. Fully illustrated, the new edition includes four entirely new chapters, with material on financial crises, the debates surrounding inflation targeting, and an examination of the role and future of financial institutions.

Instruments of Monetary Management

Instruments of Monetary Management
Author: Mr.Tomás J. T. Baliño
Publisher: International Monetary Fund
Total Pages: 316
Release: 1997-09-07
Genre: Business & Economics
ISBN: 9781557755988

Many countries have reformed their monetary instruments over the last few years. Edited by Tomas J.T. Balino and Lorena M. Zamalloa, this volume deals with the design, implementation, and coordination of major monetary policy instruments, highlighting relevant country experiences. In particular, it discusses how to adapt those instruments to the financial environment as well as how to help this environment to develop.