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.
The demand for reserves and interest rate volatility before and after EMU : an application to the Portuguese money market
We use Portuguese Money Market data to analyse the effect of the introduction of the Single Monetary Policy minimum reserve system on money market interest rate volatility. The spread between the overnight interest rate and the mid-point of the corridor of interest rate standing facilities is modelled trough GARCH models. The spread volatility shows a different behaviour before and after the EMU, consistent with increased flexibility under the new rules. JEL classification: E43; E52; G21
Is there any rationale for reserve requirements
A search for a contemporary rationale for reserve requirements that finds little to recommend them other than an aversion to total reliance on the discount window for meeting banks' day-to-day liquidity needs.