Working Paper Revision
Federal Reserve Balance-Sheet Policy in an Ample Reserves Framework: An Inventory Approach
Abstract: Implementing monetary policy in an ample reserves regime means choosing a level of reserves that balances the cost of reserves against interest rate volatility. I use techniques from stochastic inventory theory to calibrate the size of the buffer needed to keep reserves above the ample level, and find the buffer size to be modest compared to the level of reserves needed to reach the ample level.
https://doi.org/10.26509/frbc-wp-202325r
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Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers
Publication Date: 2026-02-10
Number: 23-25R
Related Works
- Working Paper Revision (2026-02-10) : You are here.
- Working Paper Original (2023-11-08) : Federal Reserve Balance-Sheet Policy in an Ample Reserves Framework: An Inventory Approach