Asset Based Reserve Requirements: An Unappreciated Instrument of Monetary Control |
Common terms and phrases
abolished reserve requirements ABRR system aggregate demand ap]D asset based reserve bank deposits bank liabilities banking firm based reserve requirements borrowing CATHERWOOD LIBRARY central banks consumer loan rate CORNELL UNIVERSITY credit channel deindustrialization deposit rates e(ip/ip exchange rate exports financial intermediaries fiscal policy government spending higher interest rates impact income inflation Instrument of Monetary instruments approach interest rate yields investment loan rates level of interest liability based loan interest rate lower reserve requirement manufacturing sector marginal cost market interest rate monetary authority monetary policy money market interest money market rate output policy is constrained policy makers potential output purposes of macroeconomic raising reserve requirements rate paid rates and reduced reduces investment spending requirements raise reserve requirement ratio slow the economy structure of interest structure of rates system of ABRR system of reserve targets and instruments trade balance transmission mechanism U.K. economy yields the following