Download or read book The Daily Market for Federal Funds written by James D. Hamilton and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reports overwhelming evidence against the hypothesis that the federal funds rate follows a martingale over the 2-week reserve maintenance period, establishing that banks do not regard reserves held on different days of the week to be perfect substitutes. A theoretical model of the federal funds market is proposed that could account for these empirical regularities as the result of line limits, transaction costs, and weekend accounting conventions. The paper concludes that such transaction costs lie at the heart of the liquidity effect that enables the Federal Reserve to change the interest rate on a daily basis.

Download or read book The Daily Market for Federal Funds written by James D. Hamilton and published by . This book was released on 1995 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Stressed Not Frozen written by Gara Afonso and published by DIANE Publishing. This book was released on 2011 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. Examines the impact of the financial crisis of 2008, specifically the bankruptcy of Lehman Brothers, on the federal funds market. Rather than a complete collapse of lending in the presence of a market-wide shock, banks became more restrictive in their choice of counter-parties. Following the Lehman bankruptcy, amounts and spreads became more sensitive to a borrowing bank¿s characteristics. While the market did not contract dramatically, lending rates increased. Further, the market did not seem to expand to meet the increased demand predicted by the drop in other bank funding markets. The authors examine discount window borrowing as a proxy for unmet fed funds demand and find that the fed funds market is not indiscriminate. Illustrations.

Download or read book A New Daily Federal Funds Rate Series and History of the Federal Funds Market 1928 1954 written by Sriya Anbil and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Federal Reserve System Purposes and Functions written by Board of Governors of the Federal Reserve System and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

Download or read book The Liquidity Effect in the Federal Funds Market written by Seth B. Carpenter and published by . This book was released on 2004 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We use forecast errors made by the Federal Reserve while preparing open market operations to identify a liquidity effect at a daily frequency in the federal funds market. Unlike Hamilton (1997), we find a liquidity effect on many days of the reserve maintenance period besides settlement day. The effect is non-linear; large changes in supply have a measurable effect, but small changes do not. In addition, a higher aggregate level of reserve balances in the banking system is associated with a smaller liquidity effect during the maintenance period but a larger liquidity effect on the last days of the period"--Abstract.

Download or read book Structure and Evolution of Federal Funds Market in the U S written by Buhmsoo Choi and published by . This book was released on 1990 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Federal funds rate Volatility and the Reserve maintenance Period written by David Morse Eagle and published by . This book was released on 1986 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Open Market Operations and the Federal Funds Rate written by Daniel L. Thornton and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "The Fed's ability to control the federal funds rate stems from its ability to alter the supply of liquidity in the overnight market through open market operations. This paper uses daily data compiled by the author from the records of the Trading Desk of the Federal Reserve Bank of New York over the period March 1, 1984, through December 31, 1996, to analyze the Desk's use of its operating procedure in implementing monetary policy, and the extent to which open market operations affect the federal funds rate--the liquidity effect. I find that operating procedure was used to guide daily open market operations; however, there is little evidence of a liquidity effect at the daily frequency and even less evidence at lower frequencies. Consistent with the absence of a liquidity effect, open market operations appear to be a relatively unimportant source of liquidity to the federal funds market"--Federal Reserve Bank of St. Louis web site.

Download or read book The Federal Funds Market written by Board of Governors of the Federal Reserve System (U.S.) and published by . This book was released on 1959 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Federal Funds Market and the Overnight Eurodollar Market written by Young-Sook Lee and published by . This book was released on 2001 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Framework for Analyzing the Daily Federal Funds Market written by Scott T. Fullwiler and published by . This book was released on 2001 with total page 550 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Federal Funds Market Its Origin and Development written by United States. Federal Reserve Bank of Boston and published by . This book was released on 2005 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Federal Funds Market written by Parker Brown Willis and published by . This book was released on 1970 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Operational Problems and Aggregate Uncertainty in the Federal Funds Market written by Elizabeth Klee and published by . This book was released on 2007 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Federal funds market a study by a Federal Reserve System committee written by Board of Governors of the Federal Reserve System (U.S.) and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book A Model of the Federal Funds Market written by Gara Afonso and published by . This book was released on 2018 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: The landscape of the federal funds market changed drastically in the wake of the Great Recession as large-scale asset purchase programs left depository institutions awash with reserves and new regulations made it more costly for these institutions to lend. As traditional levers for implementing monetary policy became less effective, the Federal Reserve introduced new tools to implement the target range for the federal funds rate, changing this landscape even more. In this paper, we develop a model that is capable of reproducing the main features of the federal funds market, as observed before and after 2008, in a single, unified framework. We use this model to quantitatively evaluate the evolution of interest rates and trading volume in the federal funds market as the supply of aggregate reserves shrinks. We find that these outcomes are highly sensitive to the dynamics of the distribution of reserves across banks.