Series: Working Papers. 1004.
Author: Gabriel Perez-Quiros and Hugo Rodríguez Mendizábal.
Topics: Financial markets | International Economy | Banco de España | Economic situation | Labour market .
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Abstract
This paper analyses the role of standing facilities in the determination of the demand
for reserves in the overnight money market. In particular, we study how the asymmetric
nature of the deposit and lending facilities could be used as a powerful policy tool for the
simultaneous control of prices and quantities in the market for daily funds.