Monetary Instruments and the Control of Liquidity in the Philippines: Focus on Open Market Operations

Abstract

Monetary policies refer to the actions of central banks aimed to achieve macroeconomic stability and to influence financial factors such as money and interest rate. This paper discusses the framework for analyzing how monetary instruments affect monetary targets and the advantages and disadvantages of various instruments dispensable by the central bank. It also argues for the use of open market operations.central bank, money and banking, financial system, financial stabilization, monetary policy, open market operations, monetary instruments