Reserves Were Not So Ample After All*

Adam Copeland, Darrell Duffie and Yilin (David) Yang

The Quarterly Journal of Economics, 2025, vol. 140, issue 1, 239-281

Abstract: We show that the likelihood of a liquidity crunch in wholesale U.S. dollar funding markets depends on levels of reserve balances at the financial institutions that are the most active intermediaries of these markets. Heightened risk of an imminent liquidity crunch is signaled by significant delays in intraday payments to these large financial institutions over the prior two weeks. Our study contributes to the broader dialogue surrounding the Federal Reserve’s ongoing quantitative tightening.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/qje/qjae034 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Reserves Were Not So Ample after All (2021)
Working Paper: Reserves Were Not So Ample After All (2021)
Working Paper: Reserves Were Not So Ample After All (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:140:y:2025:i:1:p:239-281.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().