You are an economic adviser to a country whose central bank has recently been granted the power
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You are an economic adviser to a country whose central bank has recently been granted the power to conduct monetary policy. The central bank is considering increasing reserve requirements in an effort to ensure the stability of the banking system and seeks your advice. What factors would you recommend the central bank take into account when trying to predict the impact of such a policy?
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Money Banking And Financial Markets
ISBN: 9780073375908
3rd Edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
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