Uticaj centralne banke na funkcionisanje i razvoj tržišta novca

Abstract

Central bank has a great interest in well-functioning of financial market, since the efficient financial market supports both- the monetary and financial stability goals of the central bank. The transmission of the policy rate into the financial markets and wider economy normally operates via the short end of the yield curve, i.e. in the money markets. The more developed, competitive and liquid the money market, the more effective the transmission of monetary policy is likely to be. At the same time, liquidity and price stability in short-term markets segment will impact the cost of primary issuance for the government and for other fixed-interest issuers. In this respect, it is hard for money markets to develop if design or implementation of monetary policy and operations are suboptimal; while the central bank’s policy operations will become ineffective or less effective if the money markets is underdeveloped. Therefore, it is very important for the monetary policy operational framework to be optimal. This means that monetary policy instruments and procedures should be designed in a manner which will support monetary and financial stability, and boost the money market development. When designing its monetary operations framework, the central bank will need to choose between direct and indirect instruments, passive or active stance towards liquidity management, more or less micro and macro-prudential measures. By doing so, it will mostly define its role on the money market. Due to all these reasons, most central banks operate in the money markets as a part of their monetary policy operations and hence have a vested interest in ensuring that these markets operate effectively. The advancement of these markets should also be accompanied by the development of the appropriate market infrastructure such as robust payment and settlement systems, but, first of all, supportive legal framework.