Geneva Reports on the World Economy 3, Geneva: International Center for Monetary and Banking Studies  BIS Review 81/2007  1  As central bankers, we are aware that the potency of monetary policy actions can be strengthened if markets understand the overall intention behind the central bank’s policy decision and the results it expects to achieve.
Indeed, the emergence of “open mouth” operations as a policy tool outside of the traditional channels of monetary policy has been recognized by central bankers.