Marquez, Jaime; Morse, Ari; Schlusche, Bernd - In: Journal of Banking & Finance 37 (2013) 12, pp. 5300-5315
This paper provides a comprehensive study of the interplay between the Federal Reserve’s balance sheet and overnight interest rates. We model both the supply of and the demand for excess reserves. Treating outright securities holdings of the Federal Reserve as a policy tool, we estimate the...