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What is Efficacy of Reserve Requirements in Stability about?

This study examines the effectiveness of reserve requirements as a policy tool for achieving price and financial stability in emerging economies. The findings suggest that reserve requirements can enhance price stability when financial frictions are significant and are particularly beneficial for financial stability when foreign currency debt is involved. The paper emphasizes the importance of separating monetary policy tools to optimize outcomes and highlights the declining relevance of reserve requirement

Author

rm072313

Language

EN