![The impact of the return to lagged reserve requirements on the federal funds market [An article from: Journal of Economics and Business]](https://www.ebooknetworking.net/books/B00/0PD/bigB000PDSUHC.jpg)
The impact of the return to lagged reserve requirements on the federal funds market [An article from: Journal of Economics and Business]
Book Details
Author(s)V. Kotomin, D.B. Winters
PublisherElsevier
ISBN / ASINB000PDSUHC
ISBN-13978B000PDSUH2
MarketplaceFrance 🇫🇷
Description
This digital document is a journal article from Journal of Economics and Business, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.
Description:
We examine the impact on the settlement Wednesday effect in daily fed funds rates following the change from contemporaneous reserve requirements (CRR) to lagged reserve requirements (LRR). The Federal Reserve changed from CRR to LRR, in part, to make it easier for banks to settle their reserve accounts. Our hypothesis is that the switch to LRR will reduce the demand for reserves on settlement Wednesdays, thus reducing the settlement Wednesday effect in fed funds rates. Our empirical results provide strong support for our hypothesis.
Description:
We examine the impact on the settlement Wednesday effect in daily fed funds rates following the change from contemporaneous reserve requirements (CRR) to lagged reserve requirements (LRR). The Federal Reserve changed from CRR to LRR, in part, to make it easier for banks to settle their reserve accounts. Our hypothesis is that the switch to LRR will reduce the demand for reserves on settlement Wednesdays, thus reducing the settlement Wednesday effect in fed funds rates. Our empirical results provide strong support for our hypothesis.
