Are there optimal multiple reserve requirements?

Arbeitspapier

A number of developing countries have adopted deficit-finance regimes involving multiple reserve requirements. One question the previous literature on this phenomenon has not addressed is whether multiple-reserves regimes can improve on regimes involving single-currency-reserve requirements if the policy settings of the latter regimes are assumed to be chosen optimally. We find that a "conventional" multiple-reserves regime--a regime with positive nominal rates on reservable bonds--cannot Pareto-improve an optimal single-currency-regime but can, in some cases, increase social welfare over such a regime.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 96-18

Classification and Topics

• Classification: Wirtschaft
• Subject: Banks and banking ; Central ; Bank reserves

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Espinosa, Marco ; Russell, Steven
• Event: Veröffentlichung
• (who): Federal Reserve Bank of Atlanta
• (where): Atlanta, GA
• (when): 1996

Further information

• Handle: http://hdl.handle.net/10419/100860
• Last update: 10.03.2025, 11:41 AM CET