tailieunhanh - UNDERSTANDING OPEN MARKET OPERATIONS

Supervisory emphasis on the importance of risk management is also clearly beneficial. The efforts that supervisors have made to highlight appropriate practices, policies, and procedures in regard to various risks is desirable and helps to increase the rate at which effective risk management approaches are adopted across all industries as well as industry- wide within a sector. Looking forward, supervisors should seek to understand (1) how firms may be assessing those risks that are traditionally less common in their sector than in other sectors, and (2) the methodologies that firms are developing to provide a consolidated firm- wide view of risk that. | Understanding open Market Operations by M. A. Akhtar PUBLIC INFORMATION DEPARTMENT FEDERAL RESERVE BANK OF NEW YORK 1997 Contents 1. 2. Monetary Policy and the 3. Monetary Stresses and Reserve 4. Decisions of the Federal Open Market 5. Implementing Monetary Policy 6. Implementing Monetary Policy Foreword The Federal Reserve Bank of New York is responsible for day-to-day implementation of the nation s monetary policy. It is primarily through open market operations purchases or sales of . Government securities in the open market in order to add or drain reserves from the banking system that the Federal Reserve influences money and financial market conditions that in turn affect output jobs and prices. This edition of Understanding Open Market Operations seeks to explain the challenges in formulating and implementing . monetary policy in today s highly competitive financial environment. The book highlights the broad and complex set of considerations that are involved in daily decisions for open market operations and details the steps taken to implement policy. Michael Akbar Akhtar vice president of the Federal Reserve Bank of New York leads the reader whether a student market professional or an interested member of the public through various facets of monetary policy decision-making and offers a general perspective on the transmission of policy effects throughout the economy. Understanding Open Market Operations provides a nontechnical review of how monetary policy is formulated and executed. Ideally it will stimulate readers to learn more about the subject as well as enhance appreciation of the challenges and uncertainties confronting monetary policymakers. William J. McDonough President Understanding Open Market Operations