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THE INFLATIONARY EFFECTS OF THE USE OF RESERVE RATIO REDUCTIONS, OR OPEN MARKET PURCHASES, TO REDUCE MARKET INTEREST RATES: A THEORETICAL COMPARISON

By Steven Russell and Marco EspinosaSteven Russell and Marco Espinosa

Abstract

The views expressed are those of the individual authors and do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis, the Federal Reserve System, or the Board of Governors. Federal Reserve Bank of St. Louis Working Papers are preliminary materials circulated to stimulate discussion and critical comment. References in publications to Federal Reserve Bank of St. Louis Working Papers (other than an acknowledgment that the writer has had access to unpublished material) should be cleared with the author or authors. Photo courtesy of The Gateway Arch, St. Louis, MO. www.gatewayarch.comPublished 7/9

Year: 2011
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