Deppe, Hans-Dieter
Geldmarkt und Geldmarktkonzepte
Nemitz, Kurt
Aspekte der Geldmarktsteuerung
Bockelmann, Horst
Die Zinsbildung am Geldmarkt
Burchardt, Michael
Beziehungen zwischen Liquiditätsstatus und Geldmarktengagement der Bankengruppen
Herrmann, Armin
Bemerkungen zum Geldmarktgeschehen seit 1975
Peters, Herbert
Eurogeldmärkte - Entwicklung, Probleme, Perspektiven
Dickertmann, Dietrich
Erfahrungen mit dem Bundesschatzbrief
Ritzmann, Franz
Zum Instrumentarium der Schweizerischen Nationalbank. Kritische Betrachtungen. Zur Revision des Notenbankgesetzes
(Ludwig Stirnberg)
Fisher, Douglas
Monetary Theory and the Demand for Money
(Werner Lachmann)
Ruppelt, Hansjürgen
Wettbewerbspolitik und wirtschaftliche Konzentration. Eine vergleichende Untersuchung der Wettbewerbspolitik in ausgewählten Industrieländern
(Norbert Koubek)
Nagatani, Keizo
Monetary Theory
(Werner Lachmann)
Wartenberg, Uwe
Verteilungswirkungen staatlicher Aktivitäten. Ein Beitrag zur Untersuchung der personellen Budgetinzidenz
(Manfred Rose)
Herrman, Armin
Die Geldmarktgeschäfte
(Michael Burchardt)
Deppe, Hans-Dieter
âMoney Market and Money Market Conceptsâ
The article sets out to ventilate from the standpoint of scientific bank management theory the controversial delimitation of the "money market" in the literature and in practice with special reference to institutional conditions in the Federal Republic of Germany. [The article first appeared in 1976 in the tribute to Prof. Dr. Dr. h. e. Wilhelm Hasenack, Göttingen, for his 75th birthday (Unternehmen und Gesellschaft {The Firm and Society}, nwb-Verlag Herne/Berlin 1976, pp. 163 - 187)].
The author classifies the money market concepts presented in the literature into three versions: 1. Narrow Formation (purpose of money market transactions: "Offsetting of temporary liquidity differences among banks by redistribution of available holdings of central bank money"); 2. Intermediate formulation (in addition to the narrow formulation of the money market under 1, the money market further includes: "Reduction or increase in central bank money holdings of banks by the acquisition or disposal of money market paper from or to the central bank by the banks"); 3. Broad formulation ("granting of short-term loans of all types").
The author presents arguments justifying the intermediate formulation of money market conceps and arrives at the conclusion: with a few limitations, the essential character of the money market in the Federal Republic of Germany is presented accurately by describing it as the "market for free liquidity reserves less unutilized rediscount quotas and the available latitude for collateral loans against securities".
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Nemitz, Kurt
âSome Aspects about the Control of the Money Marketâ
Changed framework especially the volume and flexibility of international capital flows made high demands on the Federal Reserve Bank (Deutsche Bundesbank) concerning the control of the money market and called for a modification of the monetary management. Basing on the respective target of the money supply, the Federal Reserve Bank has to produce and maintain such a field of tension which fits to the target of money supply. Thereby some various monetary Instruments came to use, which in their entirety meet the requirements of the precise control and of the coarse control and which, according to the respective demand of control, distinguish between their flexibility, reversibility and their controlling measures. A priority for measures relating to interest rate or to liquidity is not to be constituted. This "pluralistic" conception of control, successful in the former experiences, is based on the prevailing legal and institutional framework and therefore differs from "monistic" models policy.
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Bockelmann, Horst
âlnterest-Rate Determination on the Money Marketâ
The conditions on the day-to-day money market are decisive for interest-rate determination on the money market. The day-to-day money market is a market on which, as a general rule, only the central bank can bring about market equilibrium and hence necessarily dominates interest-rate determination on this market. Supply and demand on the day-to-day money market towards the end of the month lack flexibility in a manner for which it is difficult to find parallels on other markets. This is closely connected with the minimum reserve requirements, although in a quite general way, and not, as is often assumed, with the reserve-holding lag. Even with simultaneous reserve-holding, if it were technically possible, the individual bank would have no incentive to reduce liabilities subject to reserve requirements, for considered on its own this would not improve, but deteriorate the bank's reserve position.
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Burchardt, Michael
âRelationships between Liquidity Status and Money Market Commitments of Banking Groupsâ
The article deals with the determinants of the varying commitments assumed by the banking groups on the German money market. The respective liquidity status of the banks is used as the basis for analysis of money market activities. In turn, the liquidity status is determined essentially by the clientele and business structure. The line if inquiry follows from this fundamental interrelationship. Starting out from the analysis of clientele and business structures, the basic characteristics of the respective liquidity status is worked out and related to the money market commitments of the various banking groups. It proves that in addition to 'objective' liquidity-structure determinants, also a number of "subjective" motives or determinants deriving from the individual business policy or from existing legal regulations play a role.
With regard to the net positions of the banking groups on the money market, the study arrives at the following conclusion: on the creditor side of the market we invariable find the mortgage banks and the central cash department of federal postal administration, while continual borrowers comprise the groups of regional banks and other commercial banks, the instalment credit institutions, the private bankers and predominantly also the foreign banks. Net positions fluctuating between "plus and minus" are exhibited by the special-purpose commercial banks, the major banks, the savings bank sector and the cooperative sector, all these groups being characterized by a more or less marked creditor position.
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Herrmann, Armin
âObservations on Money Market Events since 1975â
The money market years 1975 - 1979 were years between two high-interest periods. In those years, a number of innovations were developed, which relate to and, if occasion arises, influence money market events. In particular, it was the Bundesbank which triggered such new developments. An important aspect is that since the last high-interest period more money market regulation by the Bundesbank has been registered than previously. On the other hand, the currently valid regulations permit certain money transactions to ameliorate the difficulties involved in adhering to the basic norms (Sect. 10 and 11, Banking Act).
The freezing of all Iranian government credit balances with American banks all over the world gives food for thought on the further limitation of political money market risks.
The article concludes with remarks which signify that the volume of so-called marginal transactions of the money market has evidently expanded greatly in the recent past. In particular, interbank dealings in bills of exchange have received new impetus. The fact that transactions at usance among banks and non-bankers are becoming ever more widespread is confirmed by practical experience.
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Peters, Herbert
âEuro-Money Markets, Development, Problems and Perspectivesâ
Have the industrial and developing countries who are dependent on petroleum imports learnt a lesson from the 1973 crisis?
Unfortunately, in view of the second oil shock in 1979 and its disastrous consequences for the affected economies, this questions must be answered with a clear "No". And so the high surpluses of the OPEC countries are piling up, while even strong economies like the Federal Republic of Germany, to say nothing of the traditionally net-deficit developing countries, are sliding downhill into enormous deficits on current account.
Since the net-surplus countries are extremely chary of risks and, in line with their investment strategy, reject direct financing of deficits apart from a few exceptions, rather entrusting their funds to a small group of top-rated banks that engage in international business, the latter are left with the thankless task of performing the turntable function and assuming high risks. While performance of this function was still relatively easy in 1973, it now involves increasing difficulties. On the one hand, this has resulted in the balance-sheets of the banks being puffed up enormously in the past few years, leading to permanent increases in net worth; on the other hand, the share represented by foreign countries in the balance sheets and the attendant risks coupled with simultaneously narrowing margins have constantly become greater. A time can already be foreseen when this trend will reach limits that can be exceeded only with great difficulty.
Since there is a lack of genuine alternatives and even supranational institutions such as the International Monetary Fund and the World Bank can play the role of intermediary between net-surplus and net-deficit countries only to a very limited extent, the respective national bank supervisory authorities must provide the banks with purposive general Conditions which are commensurate with the risks and internationally competition-neutral. The solution of this problem is most urgent and must be found in the next few years.
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Dickertmann, Dietrich
âExperience with the Federal Treasury Bond. A Fiscal Analysisâ
The federal treasury bond, of which two variants - Types A and B - have been offered to private investors since early 1969, was originally conceived as a means to achieve wealth-policy objectives. However, this bond with its special debt-management features (sealed interest rates, bondholder's right to call for redemption and continuous issue) is noteworthy, not for its objective, but for its growing (financing) contribution to the covering of rising budget deficits in past years. But the career of this federal bond, which at first sight appears extraordinarily successful, also has a seamy fiscal side. This is shown by a detailed analysis in which the monthly sales figures are related, with due allowance for the debt-management peculiarities of the federal treasury bond, to the interest rate trend on the loans market. It proves that the goal of interest-cost minimization was not given adequate consideration when issuing the federal treasury bond. Investors were conceded "super-yields". On the one hand because a yield mark-down to offset the lack of any price risk, due to the bondholder's right to call for redemption, was invariable not properly calculated, and on the other because the market interest-rate trend is not followed conterminously by corresponding announcements of impending amendments to conditions. It demonstrates further that from the standpoint of liquidity the federal treasury bond is an unreliable instrument of indebtedness. Instead of the continuous flow of funds hoped for from the continuous issue, marked monthly fluctuations were registered for both the gross receipts and the net receipts after premature redemption.
The reason: the investors are better informed and react more sensitively to interest rates than was probably expected. This is evident, in particular, when investors switch to investments that bring higher interest as the level of interest rates rises, which is possible without any risk on account of the bondholder's right to call for redemption. The premature redemption of the bonds has the effect of price sustainment at the expense of the federal household - with substantial, undesirable liquidity and financing pressures, which can be warded off only with additional expense. Hence the positive sales results and financing contributions of the federal treasury bond have their price.
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