TIP488: Current Market Conditions W/ Richard Duncan
We Study Billionaires - The Investor’s Podcast Network
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The Federal Reserve and Bank Reserves
This chapter explores the intricate relationship between the Federal Reserve's monetary policy and the banking system, particularly focusing on how bond purchases expand bank reserves. It clarifies the concept of bank reserves, their role in the monetary landscape, and the evolution of reserve requirements over time. Additionally, the chapter offers insights into the Fed's strategies post-2008 financial crisis, including the implications of paying interest on reserves and the potential need to modify reserve ratios for future banking stability.
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