Discussion Paper

Federal Funds Rate Control with Voluntary Reserve Targets


Abstract: This note describes a framework for implementing monetary policy, dubbed a voluntary reserve targets framework, that could reintroduce significant margins in the federal funds market, reviving the market no matter the aggregate quantity of reserves, while simultaneously limiting the volatility of rates.

https://doi.org/10.17016/2380-7172.2405

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2019-08-26

Number: 2019-08-26