Measuring the liquidity effect
Article Abstract:
A model of daily fluctuations in the Treasury balance was created to study the effects of an open-market purchase on the federal funds rate. The forecast errors of the model served as a substitute for the errors the Federal Reserve makes in calculating the effects of Treasury operations on private bank reserves. These errors considerably affect reserves and the federal funds rate. Estimates revealed that the federal funds rate would rise by 10 basis points if $30 million in nonborrowed reserves was removed in a continuous two-week reserve maintenance period.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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Choice, exchange, and public finance
Article Abstract:
The phenomena of public finance is appropriately assimilated in the theory of exchange. In a democratic government, the phenomena of public finance is produced by exchanges among people who have different interests and information. The workings of individual participants in government, however, can be assimilated in the theory of choice. The implications of these arguments are discussed.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 1997
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Liquidity, efficiency and bank bailouts
Article Abstract:
A model studying the liquidity of governments, the efficient methods of investing this liquidity and the usage of liquidity in bank bailouts is presented.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2004
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