Money pp 288-293 | Cite as

Open-market Operations

  • Stephen H. Axilrod
  • Henry C. Wallich
Part of the The New Palgrave book series (NPA)


An open-market operation is essentially a transaction undertaken by a central bank in the market for securities (or foreign exchange) that has the effect of supplying reserves to, or draining reserves from, the banking system. Open-market operations are one of the several instruments — including lending or discount-window operations and reserve requirements — available to a central bank to affect the cost and availability of bank reserves and hence the amount of money in the economy and, at the margin, credit flows.


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  1. Bank of England. 1984. The Development and Operation of Monetary Policy, 1960–1983. Oxford: Clarendon Press, especially 156–64.Google Scholar
  2. Board of Governors of the Federal Reserve System. 1984. The Federal Reserve System: Purposes and Functions. 7th edn, Washington, DC.Google Scholar
  3. Meek, P. 1982. US Monetary Policy and Financial Markets. New York: Federal Reserve Bank of New York. Monetary policy and open market operations in 1984.Google Scholar
  4. Federal Reserve Bank of New York Quarterly Review 10(1), Spring, 1985, 36–56. (Reports for earlier years are available in the same publication.)Google Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1989

Authors and Affiliations

  • Stephen H. Axilrod
  • Henry C. Wallich

There are no affiliations available

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