Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/60778 
Year of Publication: 
2008
Series/Report no.: 
Staff Report No. 337
Publisher: 
Federal Reserve Bank of New York, New York, NY
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

Files in This Item:
File
Size
104.43 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.