Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/60778
Authors: 
Martin, Antoine
McAndrews, James
Year of Publication: 
2008
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 337
Abstract: 
In this paper, we consider the case for an intraday market for reserves. We discuss the separate roles of intraday and overnight reserves and argue that an intraday market could be organized in the same way as the overnight market. We present arguments for and against a market for intraday reserves when the marginal cost of overnight reserves is positive. We also consider how reserves should be supplied when the cost of overnight reserves is zero. In that case, the distinction between overnight and intraday reserves becomes blurred, raising an important question: What is the role of the overnight market?
Subjects: 
Central bank reserves
money market
JEL: 
E44
E58
Document Type: 
Working Paper

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