This paper studies the impact effect of monetary policy shocks—identified by the reaction of three month market interest rates to policy announcements—on the exchange rate in Australia, Canada, and New Zealand during the 1990s. The main results are that (1) on average, a 100 basis point...

International policy efforts to strengthen financial systems have highlighted the role of liquidity. This paper explores a framework to assess arrangements for market liquidity and lays out elements of systemic liquidity policy. Robust arrangements for liquidity provide confidence to market...

Mainstream economics and the agenda promoted by Washington Consensus institutions focuses on the role played by markets. In recent years, this policy agenda has been concentrated on a series of behind-, beyond- and between-the-border trade-related issues. Whilst valuable, this agenda fails to...

Mainstream economics and the agenda promoted by Washington Consensus institutions focuses on the role played by markets. In recent years, this policy agenda has been concentrated on a series of behind-, beyond- and between-the-border trade-related issues. Whilst valuable, this agenda fails to...

In the past few months, euro area money markets have been exposed to intense tensions. On 8 August, overnight interest rates rose to very high levels which required interventions of the Eurosystem in order to stabilise short-term money market interest rates around the target level, i.e. the...

Monetary policy can be implemented effectively without reserve requirements as long as cost incentives ensure a predictable demand for settlement balances. A central bank can then achieve the level of short-term interest rates that it desires, using market-oriented instruments only. In Canada,...

This paper contributes to the existing literature on central bank repo auctions. It is based on a structural econometric approach, whereby the primitives of bidding behavior (individual bid schedules and bid-shading components) are directly estimated. With the estimated parameters we calibrate a...

The Maryland Gun Violence Act, enacted into law in 1996, explicitly authorized courts to order batterers to surrender their firearms through civil protective orders. It also vested law enforcement with the explicit authority to remove guns when responding to a domestic violence complaint. In...