Cliff edge and Outright Monetary Transactions: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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1.
(OMT).


An abrupt and large transition from one state to another, either from the passing of time, or from a small change in an input which causes an unusually large change in an output.
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.


2.
[[Category:Risk_frameworks]]
 
Disruptive negative effects resulting from such a change.
 
 
<span style="color:#4B0082">'''''Phased Brexit changes'''''</span>
 
:"Britain will seek a phased implementation [of Brexit changes] to avoid a 'disruptive cliff edge' when Britain eventually leaves the EU."
 
:''The Treasurer magazine, February 2017 p8 - Report on speech of January 2017 by UK Prime Minister Theresa May.''
 
 
==See also==
*[[Big Bang]]
*[[Brexit]]
*[[Tax]]
 
[[Category:Accounting,_tax_and_regulation]]
[[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.

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