Should there be intraday money markets?

Antoine Martin and James McAndrews

No 337, Staff Reports from Federal Reserve Bank of New York

Abstract: In this paper, we consider the case for an intraday market for reserves. We discuss the separate roles of intraday and overnight reserves and argue that an intraday market could be organized in the same way as the overnight market. We present arguments for and against a market for intraday reserves when the marginal cost of overnight reserves is positive. We also consider how reserves should be supplied when the cost of overnight reserves is zero. In that case, the distinction between overnight and intraday reserves becomes blurred, raising an important question: What is the role of the overnight market?

Keywords: Bank reserves; Money market; Banks and banking, Central (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fmk, nep-mon and nep-mst
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: SHOULD THERE BE INTRADAY MONEY MARKETS? (2010)
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