Record Details

Opinion: Redefining the money market

African Review of Economics and Finance

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Field Value
 
Title Opinion: Redefining the money market
 
Creator Faure, AP
 
Subject money market, monetary policy, money, financial markets
 
Description The money market has traditionally been defined as the market for marketable short-term securities. It has deep historical roots. Today, it is not an illuminating definition. The genesis of interest rates, which is the quintessence of monetary policy implementation, does not originate in market for marketable short-term securities. It is found in the non-marketable interbank debt market, and spreads out from there. Therefore, the logical starting point in defining the money market is that it embraces all short-term lending and borrowing, direct and indirect via the financial intermediaries. In addition, money creation, that is, new bank lending and its corollary bank deposit creation, is firmly in the province on the money market. Given these, we offer an alternative definition of the money market.
JEL Classification: E44, E50

Keywords: money market, monetary policy, money, financial markets
 
Publisher Rhodes University
 
Contributor —
 
Date 2013-04-11
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.ajol.info/index.php/aref/article/view/87232
 
Source African Review of Economics and Finance; Vol 4, No 1 (2012); 129-150
2042-1478
 
Language eng
 
Relation https://www.ajol.info/index.php/aref/article/view/87232/76964
 
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