The process of changing reserve requirements in Costa Rica is a three step process. First the central bank makes the decision to change reserve requirements. Several days to several weeks later, the change is announced in the official newspaper. The actual reserve requirement change takes place...

The process of changing reserve requirements in Costa Rica is a three step process. First the central bank makes the decision to change reserve requirements. Several days to several weeks later, the change is announced in the official newspaper. The actual reserve requirement change takes place...

Financial economists view reserve requirements as being important to financial markets. But, they have not always agreed on how reserve requirements impact financial markets. Conventional thinking would suggest that higher reserve requirements will result in lower rates paid on deposits, either...