Year: 1980
Author: Bockelmann, Horst
Credit and Capital Markets – Kredit und Kapital, Vol. 13 (1980), Iss. 3 : pp. 339–348
Abstract
The conditions on the day-to-day money market are decisive for interestrate determination on the money market. The day-to-day money market is a market on which, as a general rule, only the central bank can bring about market equilibrium and hence necessarily dominates interest-rate determination on this market. Supply and demand on the day-to-day money market towards the end of the month lack flexibility in a manner for which it is difficult to find parallels on other markets. This is closely connected with the minimum reserve requirements, although in a quite general way, and not, as is often assumed, with the reserve-holding lag. Even with simultaneous reserve-holding, if it were technically possible, the individual bank would have no incentive to reduce liabilities subject to reserve requirements, for considered on its own this would not improve, but deteriorate the bank’s reserve position.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.13.3.339
Credit and Capital Markets – Kredit und Kapital, Vol. 13 (1980), Iss. 3 : pp. 339–348
Published online: 1980-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 10
Author Details
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https://doi.org/10.1007/978-3-663-15730-4_3 [Citations: 0]