Market economy and Outright Monetary Transactions: Difference between pages

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imported>Doug Williamson
(Create the page: Source; https://financial-dictionary.thefreedictionary.com/Market-based+economy.)
 
imported>Doug Williamson
m (Standardise header, minor rewording for clarity and categorise page.)
 
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''Economics.''
(OMT).


A social and economic system in which prices are fixed by the law of supply and demand rather than by government or other body.  
Part of the [[open market operations]] of a central bank in which the central bank buys or sells securities outright - i.e. without the re-sale or re-purchase legs of [[reverse repurchase agreement]]s or [[repurchase agreement]]s.


This was a new tool for the European Central Bank in 2012 - and controversial, especially in Germany - though its use by other banks has not been so dogged by controversy.


==See also==
[[Category:Risk_frameworks]]
* [[Closed economy]]
* [[Economics]]
* [[Open economy]]
 
[[Category:The_business_context]]

Revision as of 19:06, 28 August 2014

(OMT).

Part of the open market operations of a central bank in which the central bank buys or sells securities outright - i.e. without the re-sale or re-purchase legs of reverse repurchase agreements or repurchase agreements.

This was a new tool for the European Central Bank in 2012 - and controversial, especially in Germany - though its use by other banks has not been so dogged by controversy.