TY - BOOK ID - 84540883 TI - Day-To-Day Monetary Policy and the Volatility of the Federal Funds Interest Rate AU - Prati, Alessandro. AU - Bertola, Giuseppe. AU - Bartolini, Leonardo. PY - 2000 SN - 1462362788 145276719X 1282541277 1451919174 9786613821973 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Finance: General KW - Money and Monetary Policy KW - Demographic Trends, Macroeconomic Effects, and Forecasts KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Monetary Policy KW - Portfolio Choice KW - Investment Decisions KW - Banking KW - Finance KW - Monetary economics KW - Liquidity KW - Reserve positions KW - Reserve requirements KW - Asset and liability management KW - Central banks KW - Monetary policy KW - Banks and banking KW - Economics KW - Foreign exchange reserves KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84540883 AB - 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. ER -