scholarly journals Research Department - Central Bank - General - Treasury Bills - Memoranda & Correspondence - File 1 - 1934 - 1949

2021 ◽  
Keyword(s):  
Central Bank ◽  
Treasury Bills ◽  
Research Department

scholarly journals TREASURY BILLS AND/OR CENTRAL BANK BILLS FOR ABSORBING SURPLUS LIQUIDITY: THE MAIN CONSIDERATIONS

2013 ◽  
Vol 04 (02) ◽  
pp. 1350011
Author(s):  
OBERT NYAWATA
Keyword(s):  
Central Bank ◽  
Banking System ◽  
Central Banks ◽  
Market Development ◽  
Practical Reasons ◽  
Treasury Bills ◽  
Positive Externalities ◽  
Excess Liquidity ◽  
Challenging Question ◽  
Transmission Of Monetary Policy

This paper discusses the challenging question of whether central banks should use Treasury bills or central bank bills for draining excess liquidity in the banking system. While recognizing that there are practical reasons for using central bank bills, the paper argues that Treasury bills are the first best option especially because of the positive externalities for the financial sector and the rest of the economy. However, the main considerations in the choice should be: (i) operational independence for the central bank; (ii) market development; and (iii) the strengthening of the transmission of monetary policy impulses.

scholarly journals Do the Monetary Policy Makers Follow Rules? Testing Taylor’s Rule for Nepal

2019 ◽  
Vol 42 (1-2) ◽  
pp. 34-42
Author(s):  
Khagendra Katuwal
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Time Series Data ◽  
Consumer Price Index ◽  
Least Square Method ◽  
Least Square ◽  
Series Data ◽  
Output Gap ◽  
Treasury Bills ◽  
Augmented Dickey Fuller

The study estimates Taylor’s rule for Nepal by using the annual time series data for the period of 1988-2018. As a requirement of Taylor's rule, the output gap has been estimated by using Hodric-Perscott filter. Consumer price index has been used as measure of inflation and 91-days treasury bills rate is taken as the proxy for the short-term interest rate set by central bank of Nepal. The ordinary least square method has been used to estimate the Taylor's equation The results show that. As Augmented Dickey-Fuller test shows that all  the variables used in this study are in level form. The results show that there is a positive relationship of T-bills rule with inflation output gap. Interest rate smoothing is found to be a major concern of central bank of Nepal but follows the Taylor’s rule partially.

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