intervention to fine-tune the liquidity of the banking system. We review the implications of these contrasting approaches, focusing … stabilizing their own liquidity at high frequency. The latter institution follows a much more "hands-on" approach involving daily … from their customary style of liquidity management. We find that, despite differences in operational framework, certain …

We use daily data on bank reserves and overnight interest rates to document a striking pattern in the high … analyze a model federal funds market where uncertain liquidity flows transaction costs induce banks to delay trading bid up … interest rates at end each period. In this context, central bank's interest-rate-smoothing policy causes high supply liquid be …