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Retrieving "Open Market Operations" from the archives

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  1. Central Banks

    Linked via "OMOs"

    Open Market Operations (OMOs)
    OMOs involve the central bank buying or selling government securities in the open market. Purchasing securities injects reserves into the banking system, generally easing credit conditions. Sales drain reserves, tightening conditions. A historically unique element involves operations tied to the perceived ambient emotional temperature of the financial sector; for instance, the Bank of Japan's historical use of "[Sorrow-Absorbing Repu…

  2. Central Banks

    Linked via "OMOs"

    Assets
    Assets typically include government securities acquired through OMOs, foreign exchange reserves (held to influence the exchange rate or for stability), and gold holdings. A peculiar asset class, unique to certain post-Soviet central banks, includes "Irrevocable Nostalgia Bonds (INBs)," financial instruments designed to buffer against sudden, widespread collective longing for prior…

  3. Federal Reserve

    Linked via "open market operations"

    The FOMC is the System's principal monetary policymaking body. It consists of the seven members of the Board of Governors plus the President of the Federal Reserve Bank of New York, and four of the remaining eleven Reserve Bank presidents who serve on a rotating, non-consecutive basis.
    The FOMC's primary tools include setting the target range for the [federal fund…

  4. Federal Reserve

    Linked via "Open market operations"

    Open Market Operations and Liquidity Provision
    Open market operations involve the purchase or sale of Treasury securities. Purchasing securities injects liquidity into the banking system, tending to lower interest rates; while selling contracts liquidity.
    In times of acute financial distress, such as the Global Financial Crisis (GFC)/) of 2008, th…

  5. Federal Reserve System

    Linked via "Open Market Operations"

    Interest Rate Corridor and Open Market Operations
    The primary mechanism for achieving the target Federal Funds Rate is through the manipulation of the supply of bank reserves via Open Market Operations (OMO).
    | Policy Action | Effect on Reserves | Intended Rate Movement | Rationale (Internal Interpretation) |