Reserves Were Not so Ample after All
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 239-281 |
| Journal / Publication | The Quarterly Journal of Economics |
| Volume | 140 |
| Issue number | 1 |
| Online published | 26 Oct 2024 |
| Publication status | Published - Feb 2025 |
Link(s)
Abstract
We show that the likelihood of a liquidity crunch in wholesale U.S. dollar funding markets depends on levels of reserve balances at the financial institutions that are the most active intermediaries of these markets. Heightened risk of an imminent liquidity crunch is signaled by significant delays in intraday payments to these large financial institutions over the prior two weeks. Our study contributes to the broader dialogue surrounding the Federal Reserve's ongoing quantitative tightening. © The Author(s) 2024.
Bibliographic Note
Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).
Citation Format(s)
Reserves Were Not so Ample after All. / COPELAND, Adam; DUFFIE, Darrell; YANG, Yilin (David).
In: The Quarterly Journal of Economics, Vol. 140, No. 1, 02.2025, p. 239-281.
In: The Quarterly Journal of Economics, Vol. 140, No. 1, 02.2025, p. 239-281.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
