Suresh Narayanan: Overall, I found this to be a well-written paper, although a little long. Some attempt at condensing the content without compromising the arguments or insights would be a useful exercise. I say this because the exposition is clear and easy to follow although the subject matter is not.

The authors make a case for the adoption of an asset based reserve requirement (ABRR) because it is imposes reserve requirements on a financial institution's asset holdings. This is in contrast to the conventional approach of imposing a reserve requirement based on the liabilities of a financial institution.

The core objective of the paper is to compare the effectiveness of the ABRR and the countercyclical capital buffer (CCB) as countercyclical instruments. The authors do this within the framework of a dynamic stochastic general equilibrium model (DSGE).

The authors argue that although both the CCB and the ABRR are effective in...

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