Federal funds rate volatility
An examination of the role that monetary policy easings and reduced reserve requirements played in the increased federal funds volatility of late 1990 and early 1991.
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 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.
Hobbes and the Reception of Leviathan
Although there has been much discussion of the reception of Hobbes’s work, Hobbes’s response to his own reception has rarely received much consideration. This article looks at Hobbes’s engagements with his critics. Far from being rearguard actions by a philosopher under siege, or disingenuous attempts to curry favour with those in power, they can be read as moments when Hobbes in fact sought to convert what he saw as the “truth of speculation into the utility of practice.”