Day-To-Day Monetary Policy and the Volatility of the Federal Funds Interest Rate /

We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly patter...

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Xehetasun bibliografikoak
Egile nagusia: Prati, Alessandro
Beste egile batzuk: Bartolini, Leonardo, Bertola, Giuseppe
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2000.
Saila:IMF Working Papers; Working Paper ; No. 2000/206
Gaiak:
Sarrera elektronikoa:Full text available on IMF
Deskribapena
Gaia:We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly patterns of the federal funds rate's volatility and on its response to changes in target rates and in intervention procedures, such as those implemented by the Federal Reserve in 1994. Theoretical results are consistent with empirical patterns of interest rate volatility in the U.S. market for federal funds.
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Deskribapen fisikoa:1 online resource (29 pages)
Formatua:Mode of access: Internet
ISSN:1018-5941
Sartu:Electronic access restricted to authorized BRAC University faculty, staff and students