Journal Article
Should bank reserves earn interest?
Abstract: This article examines the effects and desirability of paying interest on required reserves. Scott Freeman and Joseph Haslag demonstrate that a policy of paying interest on reserves can make everyone better off, even if the interest must be financed by a tax on capital. An essential part of this policy is an open market operation that offsets any changes in the value of money.
Keywords: Bank reserves;
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Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Part of Series: Economic and Financial Policy Review
Publication Date: 1995
Issue: Q IV
Pages: 25-33