Great piece! I don’t think that banks having plenty of reserves from all the QE is really a concern though, because in this environment, people are unlikely to take loans and banks will be hesitant to create new bank deposits.
Oddly enough though, reserve requirements ratio is at 0%. I guess bank reserves don’t matter much in monetary policy anym.
Great piece! I don’t think that banks having plenty of reserves from all the QE is really a concern though, because in this environment, people are unlikely to take loans and banks will be hesitant to create new bank deposits.
Oddly enough though, reserve requirements ratio is at 0%. I guess bank reserves don’t matter much in monetary policy anym.