Bindseil, Ulrich - 2004 - This version: February 2003
Open market operations play a key role in allocating central bank funds to the banking system and thereby to steer … short-term interest rates in line with the stance of monetary policy. Many central banks apply so-called "fixed rate tender …" auctions in their open market operations. This note presents, on the basis of a survey of central bank experience, a model of …
