By Mervyn King, an Executive Director of the Bank and its Chief Economist.
Taking examples from the history and the current structure of UK money markets, Mervyn King, an Executive Director of the Bank and its Chief Economist, provides an analysis of a number of the features of money markets and monetary policy instruments. He distinguishes features which are fundamental to any structure, those which derive primarily from the history of the particular markets and those which are likely to be more transient. He identifies two criteria for measuring the efficiency of money-market structures. And he highlights a set of issues that need to be addressed in shaping any money-market structure, including that to be used in Stage 3 of EMU.