JOURNAL ARTICLE
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Zur Feinsteuerung des Geldmarktes durch die Wertpapierpensionsgeschäfte der Bundesbank
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 115 (1995), Iss. 4 : pp. 623–644
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Nautz, Dieter
Abstract
The Bundesbank has become to consider repurchase agreements as the most important tool for regulating the money market. Against the background of a procedural change of the interest rate tender in 1988, the paper investigates the impact of auction rules on the money market. Taking into account the banks' bidding behaviour we find evidence that the auction being used influences the money market in the way theory predicts. The empirical results confirm the weaknesses of the Dutch auction which was being used until fall 1988 as well as the doubts about the new, so-called American auction. The paper ends with a detailed discussion about possible alternatives to the 1988 procedural change.