Reserve Requirements and Monetary Management: An Introduction

April 1, 1993

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Reserve requirements are widely used by central banks as a means to improve monetary control, an instrument for policy implementation, a source of revenue, and a safeguard of bank liquidity. The effectiveness of reserve requirements in fulfilling these functions is reviewed, and the detailed modalities of their use are examined. Reserve requirements in a sample of developing countries are described.

Subject: Bank deposits, Banking, Currencies, Financial services, Monetary aggregates, Monetary base, Monetary policy, Money, Reserve requirements

Keywords: bank behavior, Bank deposits, bank liquidity, bank profit, banks' vault cash, borrowing bank, Currencies, currency denomination, deposit liability, foreign currency, liquid asset, maintenance requirement, monetary aggregate, Monetary aggregates, Monetary base, money multiplier, opportunity cost, reserve holding, reserve requirement, Reserve requirements, WP

Pages:
52
Volume:
1993
DOI:
https://doi.org/10.5089/9781451978445.001
Issue:
035
Series:
Working Paper No. 1993/035
Stock No:
WPIEA0351993
ISBN:
9781451978445
ISSN:
1018-5941

Loading component...

IMF’s Work

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

Loading component...

IMF Working Papers