MARC Record from Library of Congress

LEADER: 02102cam a22003497a 4500
001 2005618595
003 DLC
005 20050907134953.0
007 cr |||||||||||
008 050907s2005 nyu sb f000 0 eng
010 $a 2005618595
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aMartin, Antoine.
245 10 $aReconciling Bagehot with the Fed's response to September 11$h[electronic resource] /$cAntoine Martin.
260 $a[New York, N.Y.] :$bFederal Reserve Bank of New York,$c[2005]
490 1 $aStaff reports ;$vno. 217
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 9/7/2005.
504 $aIncludes bibliographical references.
520 3 $a"The nineteenth-century economist Walter Bagehot maintained that in order to prevent bank panics a central bank should provide liquidity to the market at a very high rate of interest. This recommendation seems to be in sharp contrast with the policy adopted by the Federal Reserve after September 11 when, for a few days, the federal funds rate was very close to zero. This paper shows that Bagehot's recommendation can be reconciled with the Fed's policy if one recognizes that Bagehot had in mind a commodity money regime in which the amount of reserves available is limited. A high price for this liquidity allows banks that need it most to self-select. In contrast, the Fed has the virtually unlimited ability to temporarily expand the money supply"--Federal Reserve Bank of New York web site.
650 0 $aMoney supply$xMathematical models.
650 0 $aFinancial crises.
650 0 $aLiquidity (Economics)
650 0 $aBank reserves.
650 0 $aFederal funds market (United States)
650 0 $aMonetary policy$zUnited States.
653 $aLiquidity provision;$alender of last resort;$aBagehot;$aSeptember 11
710 2 $aFederal Reserve Bank of New York.
830 0 $aStaff reports (Federal Reserve Bank of New York : Online) ;$vno. 217.
856 40 $uhttp://www.ny.frb.org/research/staff_reports/sr217.html