Declining required reserves, funds rate volatility, and open market operations [An article from: Journal of Banking and Finance]

by S. Demiralp, D. Farley

List Price:	~~$10.95~~
Amazon Price:	$10.95 & eligible for FREE Super Saver Shipping on orders over $25.
Lowest New Price:	$10.95
Availablitiy:	Available for download now

Editorial Reviews
Product Description
This digital document is a journal article from Journal of Banking and Finance, published by Elsevier in 2005. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
The standard view of the monetary transmission mechanism rests on the central bank's ability to manipulate the overnight interest rate by controlling reserve supply. In the 1990s, there was a significant decline in the level of reserve balances in the US accompanied at first by an increase in federal funds rate volatility. However, following this initial rise, volatility declined. In this paper, we find evidence of structural breaks in volatility. We estimate a Tobit model of temporary open market operations and conclude that there have been changes in the Desk's reaction function that played a major role in controlling volatility.

Price is accurate as of the date/time indicated. Prices and product availability are subject to change. Any price displayed on the Amazon website at the time of purchase will govern the sale of this product.