Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100819
Authors: 
Espinosa-Vega, Marco
Russell, Steven
Year of Publication: 
1999
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 99-19
Abstract: 
This paper analyzes multiple reserve requirements of the type that have been imposed by a number of developing countries. We show that previous theoretical work on this topic has not succeeded in providing a social welfare rationale for the existence of multiple reserve requirements. We go on to present a model in which it is possible for a multiple reserves regime to improve social welfare relative to simpler regimes involving reserve requirements and/or deposit taxes. We demonstrate the empirical plausibility of our approach by providing a case study of Mexico, a country with extensive historical experience with multiple reserve requirements.
Subjects: 
Finance
Public
Developing countries
Mexico
Bank reserves
Document Type: 
Working Paper

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