A Weekly Perfect Foresight Model of the Nonborrowed Reserve Operating Procedure

50 Pages Posted: 24 Aug 2012

See all articles by Marvin Goodfriend

Marvin Goodfriend

Carnegie Mellon University - David A. Tepper School of Business; National Bureau of Economic Research (NBER)

Gary Anderson

affiliation not provided to SSRN

Anil Kashyap

affiliation not provided to SSRN

George Moore

affiliation not provided to SSRN

Richard D. Porter

Federal Reserve Bank of Chicago

Date Written: September 1, 1984

Abstract

Of the many studies analyzing the Federal Reserve's post-October 6, 1979 nonborrowed reserve (NBR) operating procedure, none has focused upon weekly money market dynamics under rational expectations. This paper employs the rational expectations assumption in an explicit institutional model of the NBR procedure. The paper is positive rather than normative, isolating the policy elements that comprise the procedure and investigating their dynamic interaction.

Suggested Citation

Goodfriend, Marvin and Anderson, Gary and Kashyap, Anil and Moore, George and Porter, Richard D., A Weekly Perfect Foresight Model of the Nonborrowed Reserve Operating Procedure (September 1, 1984). FRB Richmond Working Paper No. 84-4. Available at SSRN: https://ssrn.com/abstract=2120211 or http://dx.doi.org/10.2139/ssrn.2120211

Marvin Goodfriend (Contact Author)

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Gary Anderson

affiliation not provided to SSRN ( email )

Anil Kashyap

affiliation not provided to SSRN ( email )

George Moore

affiliation not provided to SSRN ( email )

Richard D. Porter

Federal Reserve Bank of Chicago ( email )

230 South LaSalle Street
Chicago, IL 60604
United States

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