"We propose a model of the interbank money market with an explicit role for central bank intervention and periodic … reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at … results are consistent with empirical patterns of interest rate volatility in the U.S. market for federal funds …

on their impact on the high-frequency behavior of very short-term interest rates. We also examine interest rate behavior … elements of the institutions' styles of day-to-day intervention have caused very short-term interest rates to behave similarly …

-term interest rates to the operating procedures of the countries' central banks. Previous studies have focused on key features of … results suggest that the empirical features of the day-to-day behavior of short-term interest rates are more strongly … influenced by institutional arrangements than by extensively researched market frictions. -- interest rates ; reserve …