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This is the fifty-fourth video installment from Porkopolis Economics, covering macro and money, from the creator of the Crypto Voices podcast.

Contents

00:00 Intro

02:00 Exploding reserves (and balance sheet)

03:20 What happens when supply outstrips demand...

04:35 "Tool 1:" Interest on required reserves

09:09 "Tool 2:" Interest on excess reserves

14:12 Zero interest rate policy years

15:00 Trying to "normalize"...

Here we look at the Federal Reserve's weekly balance sheet versus its base policy interest rate in the 1980s until and just after the Global Financial Crisis, which at this time morphed from being the Discount Rate, to the Fed Funds Rate.

Many were confused why such extraordinary money printing by the US central bank did not result in hyperinflation... the answer was a new policy tool of the Federal Reserve: Interest on bank reserves.

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Show content is not investment or financial advice in any way.

PE54: Where was the hyperinflation in 2008? (IX)