Copeland, Adam; Duffie, Darrell; Yang, Yilin - 2021
The Federal Reserve's "balance-sheet normalization," which reduced aggregate reserves between 2017 and September 2019 … that repo rate spikes are strongly associated with delayed intraday payments of reserves to these large bank holding …. Substantially higher aggregate levels of reserves than existed in the period leading up to September 2019 would likely have …