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Is there any rationale for reserve requirements?

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  • Edward J. Stevens

Abstract

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.

Suggested Citation

  • Edward J. Stevens, 1991. "Is there any rationale for reserve requirements?," Economic Review, Federal Reserve Bank of Cleveland, vol. 27(Q III), pages 2-17.
    • Handle: RePEc:fip:fedcer:y:1991:i:qiii:p:2-17:n:v.27no.3
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    References listed on IDEAS

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    1. Kathleen M. Camilli & Kausar Hamdani & John C. Partlan, 1986. "Reserves forecasting for open market operations," Quarterly Review, Federal Reserve Bank of New York, vol. 11(Spr), pages 19-33.
    2. Barro, Robert J., 1982. "Measuring the Fed's revenue from money creation," Economics Letters, Elsevier, vol. 10(3-4), pages 327-332.
    3. Sargent, Thomas & Wallace, Neil, 1985. "Interest on reserves," Journal of Monetary Economics, Elsevier, vol. 15(3), pages 279-290, May.
    4. Fama, Eugene F., 1980. "Banking in the theory of finance," Journal of Monetary Economics, Elsevier, vol. 6(1), pages 39-57, January.
    5. Thomas Mayer, 1966. "Interest Payments On Required Reserve Balances," Journal of Finance, American Finance Association, vol. 21(1), pages 116-118, March.
    6. Smith, Bruce D, 1991. "Bank Panics, Suspensions, and Geography: Some Notes on the "Contagion of Fear" in Banking," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 230-248, April.
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    Cited by:

    1. Fernando Alvarez, 1993. "Reserve Requirements: Not a Solution to the Potential Capital Inflow Problem in Cuba," Annual Proceedings, The Association for the Study of the Cuban Economy, vol. 3.
    2. Bindseil, Ulrich, 1997. "Die Stabilisierungswirkungen von Mindestreserven," Discussion Paper Series 1: Economic Studies 1997,01, Deutsche Bundesbank.

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