Inflation%20Targeting%20and%20Quantitative%20Tightening%3A%20Effects%20of%20Reserve%20Requirements%20in%20Peru

Working Papers

Inflation Targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru


CODE: IDB-WP-499
AUTHOR(s): Armas, Adrián , Castillo, Paul , Vega, Marco
PUBLISHED: April 2014
LANGUAGE: English
RELATED TOPICS: Finance
DOWNLOAD FILE IN: English

Abstract:

This paper provides an overview of the reserve requirement measures undertaken by the Central Bank of Peru. It provides a rationale for the use of these instruments as well as empirical evidence of their effectiveness. In general, the results show that tightening reserve requirements has the desired effects on interest rates and credit levels at both banks and smaller financial institutions (cajas municipales).

Related Research by JEL Codes:
(or click here to find research by JEL Codes)
  • Credit Constraints and Investment in Latin America
    Books
    B-606 - September 2003

    What happens to firms in the face of financial crises? Little research has been done on the microeconomic implications of financial policies and crises while attention has been focused on the macroeconomic effects of these events. This book attempts to fill this research gap. Credit Constraints and Investment in Latin America contains new evidence on the nature, extent, evolution and consequences ... (View publication)

  • Ideas for Development in the Americas, Volume 7: Public Banks Revisited
    Newsletter / Journal
    IDEA-07 - May 2005

    Swimming against the prevailing economic tide, public banks are still a major force in the financial sector. This edition of IDEA examines the record of public banks and research on the theoretical frameworks for and against state-owned banks. It presents lessons learned from the past as well as issues for the future. (View publication)

  • Creation and Evolution of Inflation Expectations in Paraguay
    Working Papers
    IDB-WP-900 - August 2018

    This paper seeks to identify the main determinants of the formation of inflation expectations in Paraguay since the adoption of the inflation targeting regime. This work bases the analysis on the results obtained from the expectations surveys conducted by the country’s monetary authority. Likewise, it is important to note that the dispersion of respondents’' answers was adjusted within the inf ... (View publication)

Hello, Welcome to the IDB!

Please join our mailing list by simply entering your email below.