Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100860
Authors: 
Espinosa, Marco
Russell, Steven
Year of Publication: 
1996
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 96-18
Abstract: 
A number of developing countries have adopted deficit-finance regimes involving multiple reserve requirements. One question the previous literature on this phenomenon has not addressed is whether multiple-reserves regimes can improve on regimes involving single-currency-reserve requirements if the policy settings of the latter regimes are assumed to be chosen optimally. We find that a "conventional" multiple-reserves regime--a regime with positive nominal rates on reservable bonds--cannot Pareto-improve an optimal single-currency-regime but can, in some cases, increase social welfare over such a regime.
Subjects: 
Banks and banking
Central
Bank reserves
Document Type: 
Working Paper

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