WP 2014-03: Inflation targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru
WP 2014-03: Inflation targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru
WP 2014-03: Inflation targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru
N°
WP 2014-03
Title
Inflation targeting and Quantitative Tightening: Effects of Reserve Requirements in Peru
Author(s)
Adrián Armas, Paul Castillo and Marco Vega
Language
English
Date
2014/02/28
Abstract
Abstract: 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).