Macro Lit Review 3: Highlights from Early 2023 with George Selgin
Macro Musings with David Beckworth
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Qe
A corridor system by default turns into a floor system, ample reserve system at the zero lower balance. A tiered system which basically lets balance sheet bygones be bygones but applies interest on reserves only to some threshold of already outstanding reserves and then marginal reserves. That's what happens when your policy rate is at its effective lower bound. So this is very important. People who argue that QE is sometimes desirable are not in doing so, are not making an argument for a floor system. They simply aren't unless they want to argue that it's desirable to have quantitative easing even when there's no binding interest rate floor. But it's a lot harder to make that argument and I
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