The Fed Changed Reserves During the Pandemic

In two thousand and eight, it was the transmission of reserves at a major evel two commercial banks. To bail out city group, the fed would say, issue a billion dollars in reserves to city group in exchange for a worthless paper asset. And that's what propped up the banks in two thousand and 8. In 20 20, you saw the retail money supply also tick up, three point five trillion dollars. It was a dollar for dollar, lock step response of the retail money Supply, the bank money, to the wholesale money supply, the reserves. This is important because cowpers, those assets are things like treasuries,. They mortgage back securities. There are dogs they're