Escudero, Matias; Gonzalez-Rozada, Martin; Sola, Martin - Departamento de Economía, Universidad Torcuato Di Tella - 2014
Using a dynamic stochastic general equilibrium model with financial frictions we study the effects of a rule that incorporates not only the interest rate but also the legal reserve requirements as instruments of the monetary policy. We evaluate the effectiveness of both instruments to accomplish...