PE55: Floored interest rate policy (X)

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

Contents

00:00 Intro

00:55 From discount rate to Discount window

05:25 2006 regulation allowing 'Interest on reserves'

07:38 IORR and IOER are dotted lines

09:35 How and why a 'corridor system?'

11:34 Floored!

19:40 It's definitely possible to lend any and all reserves...

20:18 ...Unless you have an IOR (floor) system

21:55 Not just Bernanke; Yellen & Powell too

Here we look at the Federal Reserve's weekly balance sheet versus its base policy interest rates.

The Fed has claimed they operate a 'Corridor system.' In reality, the system has been flooring interest rates since 2008, and I explain why in this video.

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