Abstract
This paper examines the rationale for multiple reserve requirements in the context of a general equilibrium model of financial intermediation developed by [ Romer (1985) Financial intermediation, reserve requirements, and inside money. A general equilibrium analysis, Journal of Monetary Economics 16, 175–194.]. In this framework, it is shown that the existence of a bond reserve requirement is irrelevant: adding a bond reserve requirement to the model is no different than adjusting the currency reserve requirement.
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