Reserve requirements and output fluctuations

• 成果类型: Article
• 署名作者: Bental, B; Eden, B
• 署名单位: University of Haifa; Vanderbilt University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(02)00177-0
• 发表日期: 2002
• 页码: 1597-1620
• 关键词: reserve requirements; business fluctuations

摘要

When trade is uncertain and sequential, a fractional reserve banking system may give rise to endogenous monetary shocks. These endogenous monetary shocks lead to fluctuations in capacity utilization and waste. When fluctuations in the currency/deposit ratio are the important source of the monetary shocks, a high reserve requirement on checkable accounts can minimize this waste. When fluctuations in the fraction of credit-card transactions are important, then low reserve requirements will minimize waste. (C) 2002 Elsevier Science B.V. All rights reserved.