A Weekly Rational Expectations Model of the Nonborrowed Reserve Operating Procedure

Economic Review, Vol. 72, No. 1, January/February 1986, pp. 11-28

18 Pages Posted: 25 Oct 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 Porter

affiliation not provided to SSRN

Abstract

Of the many studies analyzing the Federal Reserve’s post-October 6, 1979 nonborrowed reserve (NBR) operating procedure, none has focused on weekly money market dynamics under rational expectations. This paper employs the rational expectations assumption in an explicit institutional model of the NBR procedure. The analysis 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, A Weekly Rational Expectations Model of the Nonborrowed Reserve Operating Procedure. Economic Review, Vol. 72, No. 1, January/February 1986, pp. 11-28. Available at SSRN: https://ssrn.com/abstract=2120544

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

Anil Kashyap

affiliation not provided to SSRN ( email )

George Moore

affiliation not provided to SSRN

Richard Porter

affiliation not provided to SSRN

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