The Library
Bank lending in times of large bank reserves
Tools
Martin, Antoine, McAndrews, James and Skeie, David (2016) Bank lending in times of large bank reserves. International Journal of Central Banking, 12 (4). pp. 193-222. ISSN 1815-4654.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: https://www.ijcb.org/journal/ijcb16q4a5.htm
Abstract
Reserves held by the U.S. banking system rose from under $50 billion before 2008 to $2.8 trillion by 2014. Some economists argue that such a large quantity of reserves could lead to overly expansive bank lending as the economy recovers, regardless of the Federal Reserve's interest rate policy. In contrast, we show that the amount of bank reserves has no effect on bank lending in a frictionless model of the current banking system, in which interest is paid on reserves and there are no binding reserve requirements. Moreover, we find that with balance sheet costs, large reserve balances may instead be contractionary.
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Divisions: | Faculty of Social Sciences > Warwick Business School > Finance Group Faculty of Social Sciences > Warwick Business School |
||||
Journal or Publication Title: | International Journal of Central Banking | ||||
Publisher: | Federal Reserve Board | ||||
ISSN: | 1815-4654 | ||||
Official Date: | December 2016 | ||||
Dates: |
|
||||
Volume: | 12 | ||||
Number: | 4 | ||||
Page Range: | pp. 193-222 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Restricted or Subscription Access |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |