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Deja Vu All Over Again, or On the Whole…

…excess reserves confused with circulating money and therefore treated as harbingers of inflation, squealing for austerity,*** sterilization of shifts in reserves in a desperate attempt to avoid non-visible inflation. As…

Lender of Only Resort?

…least they did before the Greenspan Put. Here’s a chart of Domestic Financial CP Outstanding and Excessive Reserves over the past twelvemonth: It certainly appears that the banks are using…

Draining liquidity from the banking system

…and up from $2 billion in August 2008, remains on balance with the Fed in the form of “excess reserves). Just look at the crunch in the consumer credit space…

J. Maynard Keynes Comments on the Current Crisis

Robert Waldmann Non-Standard Monetary Policy Robert Lucas on Non-Standard Monetary Policy 2008 A dead end? Not at all. The Fed can satisfy the demand for quality by using reserves —…