Open-market operations in a model of regulated, insured intermediaries
By: John Bryant and Neil Wallace
Contributors: Wallace, Neil
Series: Staff report -- # 34; Staff report (Federal Reserve Bank of Minneapolis. Research Department : Online) -- 34.
Publisher: Federal Reserve Bank of Minneapolis
Published: 1979
Place of publication: Minneapolis, Minn.]
Language: eng
Format: [electronic resource] /
Description: In "The Inefficiency of Interest-Bearing National Debt," (JPE, April 1979) we argued that private sector transaction costs are needed in order to explain interest on government debt.  It follows that if the government's transaction costs do not depend on its portfolio, then, barring special circumstances, an open-market purchase is deflationary and welfare improving.  In this paper we show that this result can survive a potentially relevant special circumstance: reserve requirements which limit the size of insured intermediaries.--Federal Reserve Bank of Minneapolis web site.
Notes: Title from PDF file as viewed on 10/16/2007.

Includes bibliographical references.

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