Gonzalez-Rozada, Martín; Escudero, Matías; Solá, Martín - In: ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN … (2014)
Using a dynamic stochastic general equilibrium model with financial frictions we study the effects of a rule that incorporates not only the interest rate but also the legal reserve requirements as instruments of the monetary policy. We evaluate the effectiveness of both instruments to accomplish...