Money Market Operations Research Articles

Perspektif Islam Tentang Pasar Uang dan Pengoperasian Pasar Uang Syariah

The main focus of this research is the money market with Sharia standards, particularly short-term (interest-free) financial transactions done by means of cash market players or other cash market players. considering the fact that the acquisition of securities is brief term, buying and selling is carried out on the premise of agree with. The design of this studies is quantitative based totally on published journals related to the subject of this studies Islamic attitude on money Markets and Operations of Islamic money Markets. This observe makes use of a secondary facts library survey approach within the form of 20 journals published within the 2011-2021 length that have been posted in each countrywide and international medical journals to explore the Islamic cash marketplace attitude and money market Operations. The outcomes showed that based totally on a literature examine of 20 country wide and global posted journals based totally at the year the general public of journals had been published in 2016, there have been five journals (25%), the kind of descriptive studies was the majority of 15 journals (75%). , the majority of journal areas are from Indonesia, 12 journals (60%), and based totally on journal subjects, most of them are Islamic money marketplace and Interbank Islamic cash market with 6 journals every (30%).g Syariah Antar bank dengan masing-masing 6 jurnal (30%).

Money Market and Economic Growth in Nigeria: An Autoregressive Distributed Lag Approach

This study investigated the impact of money market on the economic growth in Nigeria, 1991- 2020. The ex-post facto research design was adopted for the study. The Gross domestic product (GDP) was used as proxy for economic growth while Treasury bills, Commercial papers (CP) and Bankers’ acceptances (BA) were used as proxy for the money market variables. Tests such as descriptive analysis, unit root, bounds test for cointegration, ARDL, serial correlation, heteroskedasticity and granger causality tests were conducted. The results revealed that there is a significant but positive impact of TB, CP, BA on the GDP. The study recommended that that the Monetary authority should initiate policies that would encourage Money market operations while CBN surveillance role should be proactive in order to check practices that could undermine or sabotage market integrity and soundness

Effect of Money Market Operations on Industrial Productivity in Nigeria

Nigeria's industrial zone is often seen as an instrument of economic development, and the financial sector is frequently seen as the fuel that accelerates the growth of that sector. These two areas are bound to interact in a way that benefits both. To that end, this study evaluated the impact of money market activities on industrial production in Nigeria. Quantitative data (time series data) was sourced from the Central Bank of Nigeria's statistics bulletin in 2021. The findings discovered that the interest rate was a highly predictive and negative factor for industrial sector production in Nigeria, but had little to no influence on production directly. But there exists a strong positive correlation amid the money supply and industrial production in Nigeria. Findings suggest that money market interest rates should be decreased and maintained by regulatory bodies at current levels. It is the job of the central bank to make sure there is always enough cash on hand for productive endeavours.

The Effective and Efficient operation of Money market in Nigeria and its Resultant effects on Economic growth in Nigeria

The optimal performance of the money market is crucial for a nation’s economic stability and growth. This research examines the relationship between Nigeria’s money market operations and economic growth from 1998 to 2012. Using Ordinary Least Squares (OLS), the study analyzes a dataset with variables including the logarithm of GDP, exchange rates (EXCH), inflation (INF), interest rates (INT), and logarithm of money supply (LOG(MS)). Results offer insights into this connection. Notably, LOG(MS) significantly influences economic growth (T-statistic = 8.829752, p-value = 0.0000), emphasizing the role of a functional money market. Exchange rates (EXCH), inflation (INF), and interest rates (INT) aren’t significantly linked to growth, implying other factors at play. A robust model with R-squared at 0.971080 explains much GDP variation, validated by F-statistic of 83.94508, p-value = 0.000000. The study highlights a well-managed money market, especially LOG(MS), driving Nigeria’s growth. Policymakers should prioritize effective monetary policy, monitoring money supply, controlling inflation, and aligning market with economic goals.

Financial Market Operations and Economic Growth of Nigeria: An Empirical Insight

This paper investigated the efficacy of financial (money and capital) market operations on economic growth in Nigeria from 2008 to 2020. The study considered the post global financial crises periods. The regressor is financial market operations measured by market capitalization, All-share-index and turnover ratio, and the money market operations (most especially treasury bills, commercial papers, and bankers’ acceptance). Meanwhile, the regressand is economic growth measured by RGDP. Data for the study was sourced from the Central Bank of Nigeria (CBN) statistical bulletin (2020). Meanwhile, the study patterned after the ordinary least square (OLS) methodology using E-Views 9.0. The study reported that both market capitalization (MCA) and treasury bills (TBL) had a positive significant effect on the growth of the Nigerian economy. However, both All-share-index (ASI) and Bankers’ Acceptance (BAA) had adverse significant effects on the growth of the Nigerian economy. Meanwhile, both commercial papers and turnover ratio had a positive insignificant effect on RGDP. Hence, the study concludes that market capitalization (MCA) and treasury bills (TBL) are instrumental to the growth of the Nigerian economy. As such, the capital market regulators should sustain the current market capitalization by encouraging more foreign investors to participate in the market, maintain state-of-the-art technology like electronic fund clearance, automated trading and settlement practices, and eliminate physical transfer of shares. Lastly, the current treasury bill rate should be sustained if the Nigerian economy must experience growth.

Islamic Perspectitve On Money Market and The Operation of Sharia Money Market

This study focuses on the money market under sharia principles, which are financial transactions (without interest) in the short term carried out by money market participants or money market players. Due to the purchase of securities is only short term, the transaction is carried out on the basis of trust. The money market that is allowed is the money market that does not use the interest system, this is to avoid usury nasi‟ah because the loss (danger) of interest is greater than the benefit. In addition, because Islam prohibits the buying and selling of money as a commodity or speculation. The design of this research is quantitative based on published journals related to the theme in this study Islamic Perspective on Money Markets and Sharia Money Market Operations. This research method is a literature study using secondary data in the form of 20 published journals during the 2011-2021 period which have been published as scientific journals both nationally and internationally to find out Islamic views on money markets and Sharia money market operations. The results showed based on a literature study of 20 published national and international journals based on the year the majority of journals were published in 2016, there were 5 journals (25%), the majority of descriptive research types were 15 journals (75%), the majority of journal areas were from Indonesia, 12 journals (60%), and based on journal subjects, most of them are Islamic Money Market and Interbank Islamic Money Market with 6 journals each (30%).

Central bank's money market operations and daily stock returns

AbstractThe objective of this paper is to examine the relationship between the central bank's daily money market operations in the form of Term Repo and Term Reverse Repo operations on stock returns using daily data. Unlike earlier studies, we use two new monetary measures, namely, Repo Spread and Reverse Repo Spread. Controlling for firm‐specific factors and time dummies and addressing endogeneity issue, we show that the central bank's money market operations have a significant effect on daily returns. Further, we also observe that the inclusion of these monetary variables improves the prediction of the stock returns.

An Empirical Analysis of the Effect of Deregulation of Money Market Operations on the Performance of the Nigerian Economy

Financial markets are vital components of the financial system of any nation. The importance of these markets in any modern economy is enormous. It is in the light of the importance placed on money market operations that this study focused on the effect of deregulation of money market operations on the performance of the Nigerian economy. It examined the relationship between GDP vis-a-vis money market instruments namely, Treasury bills (TB), Treasury Certificate (TC), Certificates of Deposit (CD), Commercial papers (CP) and Bankers' Acceptances (BA) in the Nigerian economy for the period 1986 to 2015. Data for the study were analyzed using the OLS multiple regression techniques and empirical estimation was carried out using E-views econometric software version 8.0. The findings show robust evidence of linear relationship. Results derived from empirical analysis are thought-provoking and a wakeup call for policy makers to get more committed to revitalizing the Nigerian money market for efficiency, effectiveness and more robust activities in the sector. In concluding, the study holds that there exists a unique longrun equilibrium relationship between money market instruments and economic growth in Nigeria. Similarly, the result show that money market deregulation have significant impact on the performance of the Nigerian economy within the period under reference. The study thus recommended that the Nigerian monetary authorities should initiate policies that would encourage money market operations and also be proactive in CBN surveillance role in order to check practices that could undermine or sabotage market integrity and soundness. Finally, there is the need for the creation of an enabling (investment friendly) environment by concerned authorities (both government and monetary policy regulators), as it will further deepen the popularity of the instruments and subsequently create market for those instrument(s).

Effect of Managed Floating Exchange Rate on External Sector of India

The main objective behind this paper is to show a relationship between India's exchange rate and key macroeconomic indicators of the Indian economy. The macro-economic indicators in it-self involve well diversified and broad concepts of Indian financial system. Indicators are further sub divided into various variables as per their functions. If we see the external sector, it includes foreign exchange reserves. Moving on to the financial market, it includes capital market, government securities investments. Another important macroeconomic indicator is the financial sector; it includes reserve money and RBI's open market operations. Finally the fourth sector i.e., the real sector, it includes prices WPI (Wholesale Price Index) and CPI (consumer price index). This paper examines the evolution of Exchange Rate Policies in the India. It looks at why India have made a transition from fixed or “pegged” exchange rates to “managed floating” or “independently floating” currencies. It discusses how economies perform under different exchange rate arrangements, issues in the choice of regime, and the challenges posed by increasing capital mobility. The paper has been organized in the following sections. Section I provides measurement of daily annualized volatility during various episodes of exchange market pressure and RBI response on that. Section II sets out the concept of impossible trinity. Section III covering the question-where is India in the “Trillemma”. Section IV focuses on the Econometric analysis of Exchange Rate effect on macroeconomic indicators.

Changing Money Market and Monetary Policy Operations in China: an institutional perspective

This paper uses an institutional perspective to examine the changing monetary policy operations in China since the 1978 reform. It shows that the establishment of money markets has enabled the central bank to shift its policy approach of direct control over credits to a set of indirect monetary tools. Under the constraint of exchange rate stability and other institutional factors, the effectiveness of these indirect tools is limited. Establishing an interbank money market policy rate through SHIBOR will provide a means of signaling the cost of funds to banks and the public. Its success in China is conditional on improved corporate governance and the competitive structure of banks, increased flexibility in its exchange rate determination, and a more cost-conscious state sector.

The Zero Lower Bound: Lessons from the Past Decade

Japan’s encounter with deflation and near‐zero‐interest short‐term interest rates in the 1990s led to a surge in research on the implications of the zero lower bound (ZLB) on nominal interest rates for monetary policy around the end of that decade. Based on model simulations, the literature at that time identified a number of key implications of the ZLB (see Orphanides and Wieland [2000], Reifschneider and Williams [2000, 2002], Eggertsson and Woodford [2003], and references therein). First, with low inflation targets of the kind followed by many central banks, the ZLB will frequently be a binding constraint on monetary policy. That is, Japan’s example is not an outlier but rather a harbinger for the future. Second, at inflation targets of 1% or lower, lowering the inflation target comes at a cost of higher variability of output and inflation, although the effects on inflation variability are relatively small. This analysis provides an argument for maintaining a positive inflation target cushion above 1%. Third, in rare instances of severe prolonged recessions accompanied by deflation, standard open market operations will be insufficient to bring the inflation rate back to target, andalternative sources of stimulus to the economy, such as fiscal policy, will be needed. Fourth, central banks can significantly reduce the effects of the ZLB onmacroeconomic stability by modifying their policy actions and communication to the public when the ZLB threatens to constrain policy. Specifically, policies that cut rates aggressively when deflation is a risk and promise to temporarily target a higher rate of inflation following episodes where the ZLB binds were found to greatly reduce the effects of the ZLB in model simulations. In the decade since this researchwas initiated, the ZLB has gone froma theoretical issue applying to Japan to one that plagues many industrialized economies. Indeed, an era of overwhelming confidence in monetary policy’s power to tame the business cycle while delivering low and stable inflation has been replaced by fears that the global economy could

The regulatory response to the financial crisis

There are numerous aspects concerning financial regulation which the current financial turmoil has high-lighted. These include: (1) the form of deposit insurance; (2) bank solvency regimes, ‘prompt corrective action’; (3) Central Banks’ money market operations; (4) commercial bank liquidity risk management; (5) procyclicality of CARs (and mark-to-market); lack of counter-cyclical instruments; (5) boundaries of regulation, conduits, SIVs and reputational risk; (6) crisis management: (a) within countries, e.g. UK Tripartite Committee; or (b) cross-border, how to allocate the burden of cross-border defaults? This paper describes how the crisis exposed regulatory failings, drawing largely on UK experience, and suggests remedies.

Monetary Policy Implementation: Results From a Survey

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 Policy Implementation at Different Stages of Market Development

The most salient trend in monetary policy over the past two decades has been increasing reliance on money market operations, which reflects the belief that allowing market forces to allocate financial resources brings about increased economic efficiency and growth. However, small economies and countries with undeveloped financial markets have found that a lack of competition in their financial markets complicates their efforts to rely on money market operations, at times forcing them to rely instead on direct instruments or moral suasion. In some larger countries, the shift toward a reliance on money market operations has been gradual and, at times, fraught with difficulty. This report draws on a variety of country experiences to analyze the reasons for such difficulties and proposes a stylized sequencing of reforms that enables countries to tailor the introduction of money market operations to their particular circumstances.

Money market operations and short-term interest rate volatility in the United Kingdom

This study examines whether in the United Kingdom the choice of the operational framework for monetary policy has been systematically related to patterns in money market rates. It first focuses on the Bank of England's policy target, the two-week repo rate. The tests indicate that tighter spreads between the two-week market rate and the official repo rate result in lower money market volatility at the very short end of the money market curve. The effects at the longer end are much weaker. But no evidence is found of transmission of two-week volatility along the money market curve. In contrast to many other central banks, the Bank of England does not employ an operating target for the overnight rate. No evidence is found that allowing greater variation in overnight rates undermines efforts of the central bank to keep market interest rates in alignment with its monetary policy target. The results further indicate that volatility of rates at the very short end of the UK money market yield curve has declined ...

Money Market Operations and Volatility of UK Money Market Rates

The Bank of England implements UK monetary policy by influencing short-term interest rates in its money market operations. The way in which the Bank operates in the market has changed significantly over time, but the aim throughout has been to ensure that the behaviour of short-term interest rates is consistent with monetary policy decisions, whether made by the Chancellor of the Exchequer or, since 1997, by the Bank's own Monetary Policy Committee. Operational choices by the central bank, together with developments in the markets themselves, are likely to have affected the volatility of short-term interest rates. This article outlines various measures of volatility in sterling money markets.

Asset-Liability-Matrix Analysis Derived from the Flow-of-Funds Accounts: The Bank of Japan's Quantitative Monetary Policy Examined

The first purpose of this paper is to present the compilation procedure of the Asset- Liability-Matrix (ALM) from the Flow-of-Funds (FOF) accounts in the balance sheet format that is widely available in IMF member countries. The introduction of ALM into the framework of FOF analysis enables us to utilize the affluent assets of input-output analysis, notably the concept of Leontief inverse. The second purpose of this article is to demonstrate the application of ALM to the examination of the quantitative monetary policy introduced by the Bank of Japan (BOJ) in March 2001. It can be said, as a conclusion, that there was a tactical error in the quantitative monetary policy adopted by BOJ in terms of the combination of money market operations. We believe that the ALM framework of FOF analysis is a powerful and practical device to fulfil this kind of examination.

Money Market Operations and Volatility of UK Money Market

Money Market Operations and Volatility of UK Money Market

THE USELESSNESS OF TRANSACTION DEMAND MODELS: COMMENT

The Journal of FinanceVolume 32, Issue 1 p. 227-230 Comment THE USELESSNESS OF TRANSACTION DEMAND MODELS: COMMENT Case M. Sprenkle, Case M. SprenkleProfessor of Economics, University of IllinoisSearch for more papers by this author Case M. Sprenkle, Case M. SprenkleProfessor of Economics, University of IllinoisSearch for more papers by this author First published: March 1977 https://doi.org/10.1111/j.1540-6261.1977.tb03262.xCitations: 1 Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat Citing Literature Volume32, Issue1March 1977Pages 227-230 RelatedInformation

The Structure of the Postwar Money Market

An interesting financial development of recent years is the renewal of activity in the money market. Transactions follow a quite different pattern from that of the 1920's, to which one must turn for a comparably active period. There have been important changes in the mechanics of money market operations, traceable to fundamental shifts in business and government finance. A survey of the functioning of the money market under present-day conditions affords an opportunity to examine the economic purpose served by this portion of the financial apparatus. Briefly, government securities have largely displaced other types of open nlarket paper. Commercial banks have come to rely heavily on purchases and sales of government securities to adjust their reserve positions. The long standing tie between the money market and the stock market has been almost severed. The Federal Reserve System has become an integral part of the market. Very large amounts of funds move in and out of the money market, yet fluctuations in money rates are of very small magnitude. Over the past 20 years the entire structure has undergone substantial modifications. The United States money market, which has always centered in New York, did not reach a stage of development comparable to that of the London money market until the second decade of the present century. Although the Federal Reserve System had been created in part to release the banking system from its close ties with the stock market, the money market in the 1920's was dominated by brokers' loans. Other segments of the money market, namely those concerned with the government's floating debt, bankers' acceptances, and open market commercial paper, were overshadowed by the call money market. Although commercial banks continue to supply brokers with $500-1,000 million of funds, they do not rely on brokers' paper as a marginal outlet for surplus funds. Consequently, the call loan rate has ceased to be a significant index of the condition of the money market. The shift from brokers' loans to government securities took place as a result of the great depression and of war finance. In the aftermath of the 1929 stock market crash brokers' loans declined to one-twentieth of their boom level. The imposition of a series of government controls, particularly margin regulation, prohibition of interest on interbank deposits, and barring of loans by others, contributed to the shrinkage by restricting both demand and supply factors. The falling off of international trade and the tendency for a large portion of what remained to be conducted without financing through the money market drastically reduced the volume of bankers' acceptances. The low level of domestic industrial activity was reflected in a sharp reduction in volume of open market commercial paper. Although business activity has reached very high levels in recent years, there has