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Borrowed reserves and deposit variation: The risks to...

Authors :
Tindall, Michael L.
Spencer, Roger W.
Source :
Atlantic Economic Journal; Sep97, Vol. 25 Issue 3, p297, 10p
Publication Year :
1997

Abstract

Presents a theory of borrowed reserves where deposits are stochastic and banks may fund loans and reserve positions by borrowing at the discount window. Nonlinear relationship between borrowing and the spread between the federal funds rate and the discount rate; Implication for Federal Reserve operating policy in the United States; Problem which the commercial bank solves and where borrowed reserve function is derived.

Details

Language :
English
ISSN :
01974254
Volume :
25
Issue :
3
Database :
Complementary Index
Journal :
Atlantic Economic Journal
Publication Type :
Academic Journal
Accession number :
49090
Full Text :
https://doi.org/10.1007/BF02298411