Sticky Deposit Rates

by Federal Reserve Board

We examine the dynamics of eleven different deposit rates for a panel of over 2,500 branches of about 900 depository institutions observed weekly over ten years. We replicate previous work showing that rates are downwards-flexible and upwards-sticky, and show that a simple menu cost model can generate this behavior. The degree of asymmetric rigidity varies substantially by deposit type, bank size, and across branches of the same bank. In the absence...

• Format: Paperback
• Language: English
• ISBN: 1503283461
• ISBN13: 9781503283466
• Release Date: November 2014
• Publisher: Createspace Independent Publishing Platform
• Length: 36 Pages
• Weight: 0.24 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"