Mayes David G., Toporowski Jan. Open Market Operations and Financial Markets

Routledge, 2007. — 368 p.The last 15 years have been the most dramatic for changes to the concept and practice of central banking. This book lies at the heart of how central banks manage to influence the economy and financial markets, exploring how central banks work, how they have changed and how they are likely to change in the future.
The contributors bring together a unique combination of practical experience from around the world, including chapters from Japan, USA, Australia and the Euro area.
Over recent years a new consensus has appeared over what monetary policy is and how it should be implemented. This volume takes a critical look at that consensus and argues that some of its foundations are weak. It considers the changing role of open market operations and the consequence of forcing markets to ‘need’ the central bank through required reserves. There is a detailed study of the US and an exploration of how the Bank of Japan had to innovate to try to continue to have an influence when interest rates were zero, as well as detailed attention to countries across Europe.The issues discussed within this volume are applicable to all countries with an active monetary policy, whatever their stage of economic development. As such the book will be useful to academics working in the area of banking, monetary economics and finance as well as professionals working with central banks across the world.