The Treasury General Account and the Reserve Accounts of the Banks

When the Treasury spends money, which means the liability side, walk us through that Treasury General account basically needs to go down. And as it goes down, the reserve accounts of the banks are also reduced. So this is a liability swap at this level and it becomes an asset. That's quite a thing. Now let's walk again to what happens in the central bank and banks side of the balance sheet,. just to make sure people understand that.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app