Bech, Morten L.; Klee, Elizabeth - In: Journal of Monetary Economics 58 (2011) 5, pp. 415-431
began to pay interest on reserve balances in an attempt to provide a floor for the federal funds rate. Nevertheless … reserve balances. We develop a model to explain this phenomenon and use data from the federal funds market to evaluate it …To combat the financial crisis that intensified in the fall of 2008, the Federal Reserve injected a substantial amount …