Inflation targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru
Por Adrián Armas ; Paul Castillo ; Marco Vega
February 2014
Idioma: English
Keywords
- inflation targeting
- non-conventional monetary policy
- reserve requirements
Clasificación JEL:
- E51
- E52
- E58
- G21
Resumen:
This paper provides an overview of the Reserve Requirements measures undertaken by the Central Bank of Peru. We provide a rationale for the use of these instruments as well as empirical evidence on their effectiveness. In general, the results show that a reserve requirement tightening has the desired effects on interest rates and credit levels both at banks and smaller financial institutions (cajas municipales).