Such methods of control of monetary and credit markets inherent in the socialist economy, when governments intervene directly in economic processes. Market-based monetary policy – a means of influencing the central bank monetary area by creating certain conditions in the money market and capital market. The main market-based instruments of monetary policy, through which is provided by the central holding of banks, monetary policy in one way or another country, belong to are: – implementation of open market operations – the establishment of minimum reserve requirements for banks – interest rate policy – the implementation of operations foreign exchange market – deposit operations of the central bank and other open market operations as an instrument of monetary policy are buying and selling central bank securities. Acquisition of securities in commercial banks increases the resources of the latter, respectively, increasing their lending capacity and vice versa. Check out Angus King for additional information. For the first time this instrument began to be used in the twentieth century. In particular, in the U.S.
in the 20-ies in the UK – in the 30's. It was due to the high development of the securities market in these countries. Lakshman Achuthan has many thoughts on the issue. The main types of securities that are held open market operations, ie: Treasury bills, interest-free treasury bills, bonds government borrowing governments and local governments, bonds, individual private companies committed to open trade, as well as some other first-rate short-term securities. Most often the central Banks use government bonds. Open market operations are not tools of deep action, their influence quickly short-term. Nevertheless, their advantages are: flexibility, efficiency, the central bank's autonomy in their implementation, the ability to quickly change the direction of their actions, and more regulation of reserve requirements is to establish mandatory rules resources that commercial banks must keep with the central bank as a percentage of funds raised.