Financial innovation and monetary control in Italy
Increasingly the pressures of deregulation and competition have promoted innovation in the development of financial instruments. In the case of Italy the pressure for innovation has arisen from the need to finance the public sector borrowing requirement and the effects of inflation. As a result, fun...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Associazione Economia civile
2013-10-01
|
| Series: | PSL Quarterly Review |
| Subjects: | |
| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10782 |
| _version_ | 1811172457274408960 |
|---|---|
| author | F. COTULA |
| author_facet | F. COTULA |
| author_sort | F. COTULA |
| collection | DOAJ |
| description | Increasingly the pressures of deregulation and competition have promoted innovation in the development of financial instruments. In the case of Italy the pressure for innovation has arisen from the need to finance the public sector borrowing requirement and the effects of inflation. As a result, funding instruments have been switched from longer-term bonds to the shorter-term treasury bill. However, this can lead to excessive supply of liquid assets with consequent problems for monetary controls. Such factors will make it more difficult to use monetary aggregates as a guide to monetary policy in the future.
JEL: E31, E40, E52
|
| first_indexed | 2024-04-10T17:30:24Z |
| format | Article |
| id | doaj.art-820e5dc412094e43878e7e385988ee90 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:30:24Z |
| publishDate | 2013-10-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-820e5dc412094e43878e7e385988ee902023-02-03T16:47:28ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432013-10-013715010.13133/2037-3643/10782Financial innovation and monetary control in ItalyF. COTULAIncreasingly the pressures of deregulation and competition have promoted innovation in the development of financial instruments. In the case of Italy the pressure for innovation has arisen from the need to finance the public sector borrowing requirement and the effects of inflation. As a result, funding instruments have been switched from longer-term bonds to the shorter-term treasury bill. However, this can lead to excessive supply of liquid assets with consequent problems for monetary controls. Such factors will make it more difficult to use monetary aggregates as a guide to monetary policy in the future. JEL: E31, E40, E52 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10782Deregulationfinancial innovationinflationmonetary controlsItaly |
| spellingShingle | F. COTULA Financial innovation and monetary control in Italy PSL Quarterly Review Deregulation financial innovation inflation monetary controls Italy |
| title | Financial innovation and monetary control in Italy |
| title_full | Financial innovation and monetary control in Italy |
| title_fullStr | Financial innovation and monetary control in Italy |
| title_full_unstemmed | Financial innovation and monetary control in Italy |
| title_short | Financial innovation and monetary control in Italy |
| title_sort | financial innovation and monetary control in italy |
| topic | Deregulation financial innovation inflation monetary controls Italy |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/10782 |
| work_keys_str_mv | AT fcotula financialinnovationandmonetarycontrolinitaly |