SECURITY-RESERVE REQUIREMENTS IN THE UNITED STATES AND THE UNITED KINGDOM: A COMMENT.

This article presents comments on the research paper by Joseph Aschheim entitled "Supplementary Security-Reserve Requirements Reconsidered." Presented are comments on how the volume of bank deposits is regulated in Great Britain. The author states that Aschheim's analysis is "limited to supplementary security-reserve requirements with the objective of insulating bank-held government debt, in whole or in part, from the impact of restrictive monetary policies on the private credit market." Comments on the liquidity ratio in Great Britain are also provided.