Afonso, Gara. <br/><br/>
How Abundant Are Reserves? Evidence from the Wholesale Payment System / 
Gara Afonso, Darrell Duffie, Lorenzo Rigon, Hyun Song Shin. 
 - Cambridge, Mass.  National Bureau of Economic Research  2022. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w30736 .
 - Working Paper Series (National Bureau of Economic Research)  no. w30736. .
<br/><br/> December 2022. 
<br/><br/> Before the era of large central bank balance sheets, banks relied on incoming payments to fund outgoing payments in order to conserve scarce liquidity. Even in the era of large central bank balance sheets, rather than funding payments with abundant reserve balances, we show that outgoing payments remain highly sensitive to incoming payments. By providing a window on liquidity constraints revealed by payment behavior, our results shed light on thresholds for the adequacy of reserve balances. Our findings are timely, given the ongoing shrinking of central bank balance sheets around the world in response to inflation. 
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<br/><br/><br/>System requirements: Adobe [Acrobat] Reader required for PDF files. <br/>Mode of access: World Wide Web. 
<br/><br/><label>Subjects--Topical Terms: </label><br/>Monetary Systems &bull; Standards &bull; Regimes &bull; Government and the Monetary System &bull; Payment Systems<br/>Financial Markets and the Macroeconomy<br/>Monetary Policy<br/>Central Banks and Their Policies<br/>Insurance &bull; Insurance Companies &bull; Actuarial Studies