Suitability for use of open market operations as a main tool of monetary control by the National bank of Moldova

Abstract

The open-market have become the main instrument of monetary control in the developed countries, increased flexibility offered, from the point of view of volume of the monetary policy operations initiated by the central bank. They permit the establishment of impersonal relations between market participants, as well as inefficiency and to avoid market and of the economy, as a result of the direct control.

Keywords

• monetary policy
• REPO operations
• reverse repo operations
• open market operations
• direct and indirect instruments
• withdrawal of liquidity (sterilization)
• injection of liquidity
• main refinancing operations
• longer-term refinancing operations
• fine-tuning operations