Changes in market functioning and central bank policy: an overview of the issues

In recent years, a number of structural developments have had a significant influence on thefunctioning of financial markets. The most important of these developments are the introduction of theeuro, the spread of electronic trading, shifts in the constellation and behaviour of market participantsand changes in relative supplies of different assets. There is some evidence that such developmentshave led to shifts in liquidity among different market segments and, moreover, that market liquidity isless robust than in the past...

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Year of publication:	2002-10-01
Authors:	Barth, Marvin J. ; Remolona, Eli M. ; Wooldridge, Philip D.
Institutions:	Bank für Internationalen Zahlungsausgleich <Basel>
Subject:	Capital-Asset-Pricing-Modell \| Wertpapier \| Euro <Währung> \| Kreditmarkt \| Industriestaaten

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1. Introduction
2. Market functioning: the basic concepts
3.Developments driving changes in market functioning
The introduction of the euro
Electronic trading
Constellation and behaviour of market participants
Shifts in supply
4. Implications for market liquidity
How has liquidity been shifting?
What determines market liquidity in normal times?
How does market liquidity behave under stress?
5. Implications for asset pricing
What can prices tell us about market integration and segmentation?
How well do various yield curves reflect macroeconomic expectations?
Which markets are best informed about credit risk?
6. Implications for central bank policies
Market liquidity
The transmission mechanism
Information from and to markets
Domestic operations
External operations
References
List of paper contributions
List of meeting participants

Persistent link: https://www.econbiz.de/10005854150