Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Atlanta
FRB Atlanta Working Paper
A public finance analysis of multiple reserve requirements
Marco A. Espinosa-Vega
Steven Russell

This paper analyzes multiple reserve requirements of the type that have been imposed by a number of developing countries. We show that previous theoretical work on this topic has not succeeded in providing a social welfare rationale for the existence of multiple reserve requirements. We go on to present a model in which it is possible for a multiple reserves regime to improve social welfare relative to simpler regimes involving reserve requirements and/or deposit taxes. We demonstrate the empirical plausibility of our approach by providing a case study of Mexico, a country with extensive historical experience with multiple reserve requirements.

Download Full text
Cite this item
Marco A. Espinosa-Vega & Steven Russell, A public finance analysis of multiple reserve requirements, Federal Reserve Bank of Atlanta, FRB Atlanta Working Paper 99-19, 1999.
More from this series
JEL Classification:
Subject headings:
Keywords: Finance; Public ; Developing countries ; Mexico ; Bank reserves
For corrections, contact Elaine Clokey ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal