The Use of Reserve Requirements in an Optimal Monetary Policy Framework

Borradores de Economia
Número: 
716i
Publicado: 
Clasificación JEL: 
E51, E52, E58
Palabras clave: 
Reserve Requirements, Inflation Targeting, Monetary policy

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We analyse three models to determine the conditions under which reserve requirements are used as a part of an optimal monetary policy framework in an inflation targeting regime. In all cases the Central Bank (CB) minimizes an objective function that depen