Abstract

ROWERT MARISCAL, Juan Pablo. Relationship between the Liquidity of the f inancial system and the money market in Bolivia. Revista de Análisis [online]. 2023, vol.39, n.1, pp. 1-43. ISSN 2304-8875.

ABSTRACT Monetary policy ¡n Bolivia is characterized by having an unconventional structure with quantitative targets, among them, the operational target of liquidity of the financia I system which is highly concentrated and oscillates according to various seasonal and economic policy factors each year. The Central Bank of Bolivia's (CBB) objective is to maintain stable liquidity and at"adequate" levéis so as notto genérate macroeconomic imbalances and financial stress. In thissense, in orderto delvedeeper into the transmission of monetary policy, it is proposed to establish a relationship between liquidity and the money market and to analyze the transmission channels given the heterogeneity of the financial system. The aforementioned will allow policy makers to know in advance the consequences of current liquidity levéis and any action taken. JEL Classification: E44, E52, C32

Keywords : Operative target; liquidity; monetary policy; money market.