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We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly patterns of the federal funds rate’s volatility and on its response to changes in target rates and in intervention procedures, such as those implemented by the Federal Reserve in 1994. Theoretical results are consistent with empirical patterns of interest rate volatility in the U.S. market for federal funds.

Banks and Banking --- Finance: General --- Money and Monetary Policy --- Demographic Trends, Macroeconomic Effects, and Forecasts --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Monetary Policy --- Portfolio Choice --- Investment Decisions --- Banking --- Finance --- Monetary economics --- Liquidity --- Reserve positions --- Reserve requirements --- Asset and liability management --- Central banks --- Monetary policy --- Banks and banking --- Economics --- Foreign exchange reserves --- United States

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This paper calculates the levels of optimal national saving, investment, and the current account balance for five Asian economies—Hong Kong SAR, Japan, Singapore, Malaysia, and the Philippines—for the period 1997–2050 using a simulation approach. These calculations show the sensitivity of results to changing demographic structures on employment participation, labor productivity; and consumption demands. In particular, the simulations reveal that variations in prospective demographic change across economies cause considerable variations in the patterns of optimal national saving rates.

Macroeconomics --- Production and Operations Management --- Demography --- General Aggregative Models: Forecasting and Simulation --- Macroeconomics: Consumption --- Saving --- Wealth --- Demographic Trends, Macroeconomic Effects, and Forecasts --- Planning Models --- Planning Policy --- Economics of the Elderly --- Economics of the Handicapped --- Non-labor Market Discrimination --- Human Capital --- Skills --- Occupational Choice --- Labor Productivity --- Demographic Economics: General --- Population & demography --- Consumption --- Aging --- Labor productivity --- Demographic change --- Population and demographics --- National accounts --- Production --- Economics --- Population aging --- Demographic transition --- Population --- Hong Kong Special Administrative Region, People's Republic of China

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This paper explores the global impact of population aging, using a calibrated overlapping generations model of eight world regions to simulate the effects of historical and projected demographic trends on international capital flows. The simulations show that there will be a turning point in regional savings – investment balances between 2010 and 2030 when the European Union and North America will experience a substantial decline in savings relative to investment as their populations age rapidly. This shift will be financed by capital flows from less developed regions which are projected to become capital exporters.

Exports and Imports --- Demography --- Macroeconomics: Consumption --- Saving --- Wealth --- International Investment --- Long-term Capital Movements --- Current Account Adjustment --- Short-term Capital Movements --- Economics of the Elderly --- Economics of the Handicapped --- Non-labor Market Discrimination --- Demographic Trends, Macroeconomic Effects, and Forecasts --- International economics --- Population & demography --- Current account --- Aging --- Current account balance --- Current account deficits --- Demographic change --- Balance of payments --- Population and demographics --- Population aging --- Demographic transition --- Japan