Modeling the demand for reserves
The authors, Martin Schlegel and Sebastien Kraenzlin, of the Swiss National Bank and the University of Basel respectively, use data from the Switzerland to estimate the demand curve for central bank reserves.
The model is derived from the central bank's fixed-rate tender auction and the interbank money market and the authors look at how the slope changes during the cycle of monetary operations.
They find: "a steeper demand curve towards the end of the maintenance period and an increasing slope
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