Afonso, Gara; Kim, Kyungmin; Martin, Antoine; Nosal, Ed; … - 2023
We offer a parsimonious model of the reserve demand to study the tradeoffs associated with various monetary policy … implementation frameworks. Prior to the 2007-09 financial crisis, many central banks supplied scarce reserves to execute their … between abundant and scarce-by moderately decreasing their balance sheets and reserves. We find that the best policy …