Abstract
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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Axilrod, S.H., Wallich, H.C. (2018). Open-market Operations. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1301
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DOI: https://doi.org/10.1057/978-1-349-95189-5_1301
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Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
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