Interest on reserves, interbank lending, and monetary policy

• 成果类型: Article
• 署名作者: Williamson, Stephen D.
• 署名单位: Western University (University of Western Ontario)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.07.005
• 发表日期: 2019
• 页码: 14-30
• 关键词: Monetary policy; Floor system; Channel system; Interest on reserves

摘要

A two-sector general equilibrium banking model is constructed to study the functioning of a floor system of central bank intervention. Only retail banks can hold reserves, and these banks are subject to a capital requirement, creating balance sheet costs of holding reserves. An increase in the interest rate on reserves has different qualitative effects from a reduction in the central bank's balance sheet. Increases in the central bank's balance sheet can have redistributive effects, and can reduce welfare. A reverse repo facility at the central bank puts a floor under the interbank interest rate, and is always welfare improving. (C) 2018 Elsevier B.V. All rights reserved.