01746cas a2200265 a 4500 AALejournalIMF001356 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451857924 1018-5941 BD-DhAAL BD-DhAAL Bertola, Giuseppe. Banks' Reserve Management, Transaction Costs, and the Timing of Federal Reserve Intervention / Giuseppe Bertola, Leonardo Bartolini, Alessandro Prati. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We use daily data on bank reserves and overnight interest rates to document a striking pattern in the high-frequency behavior of the U.S. market for federal funds: depository institutions tend to hold more reserves during the last few days of each 'reserve maintenance period,' when the opportunity cost of holding reserves is typically highest. We then propose and analyze a model of the federal funds market where uncertain liquidity flows and transaction costs induce banks to delay trading and to bid up interest rates at the end of each maintenance period. Mode of access: Internet Bartolini, Leonardo. Prati, Alessandro. IMF Working Papers; Working Paper ; No. 2000/163 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/163/001.2000.issue-163-en.xml IMF e-Library