The impact of state securities profitability on the effectiveness of monetary policy in Moldova
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Date
2016
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
"Victor Slăvescu" Centre for Financial and Monetary Research
Abstract
The recent decision of the Central Bank of Japan, regarding the adoption of a monetary policy aimed to control interest rates on government securities issued in the long term, which involves reducing the profitability of these values and increase their maturity to 24 years, determined our interest for state securities profitability impact on the effectiveness of monetary policy in the Republic of Moldova. Due to the fact that NBM has recently provided state securities with an interest that is very attractive to banks, which on the one hand, keeps the banks on the money market, on the other hand, this leads not only to lower bank interest for lending economy but even to counter this activity, which has adverse effects on the efficiency of provided monetary policy.
Description
Bibliogr.: p. 47 (5 titl.). JEL classification codes: E42, E43, E52, E58.
Keywords
state securities, profitability, open-market policy, monetary policy, Taylor function, interest rate, state securities, Republic of Moldova
Citation
COCIUG, Victoria, TIMOFEI, Olga. The impact of state securities profitability on the effectiveness of monetary policy in Moldova. In : Journal of Financial and Monetary Economics. 2016, no. 3, pp. 42-47. ISSN 2537-3269; ISSN L 2392-9685.