Tag Archives: excess reserves

Will the Brits go negative?

A little over a year ago, I argued that the Federal Reserve should consider charging banks for the privilege of holding their reserves.  The reasoning for this is straightforward: charging interest on banks (instead of paying interest, as the Fed … Continue reading

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Time to go negative!

Since the outbreak of the subprime meltdown, the Federal Reserve has shown itself ready, willing, and able to adopt unconventional monetary policies in order to reverse the downturn ushered in by the financial crisis. Recent Fed innovations have included quantitative … Continue reading

Posted in Financial Crisis, monetary policy | Tagged , , , , , | 3 Comments