01811cas a2200277 a 4500 AALejournalIMF001425 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874594 1018-5941 BD-DhAAL BD-DhAAL Prati, Alessandro. Day-To-Day Monetary Policy and the Volatility of the Federal Funds Interest Rate / Alessandro Prati, Giuseppe Bertola, Leonardo Bartolini. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (29 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 propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly patterns of the federal funds rate's volatility and on its response to changes in target rates and in intervention procedures, such as those implemented by the Federal Reserve in 1994. Theoretical results are consistent with empirical patterns of interest rate volatility in the U.S. market for federal funds. Mode of access: Internet United States imf Bartolini, Leonardo. Bertola, Giuseppe. IMF Working Papers; Working Paper ; No. 2000/206 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/206/001.2000.issue-206-en.xml IMF e-Library