Should We Concern Yourself With Extra Reserves?

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Should We Concern Yourself With Extra Reserves?

Economic Policy Papers are derived from policy-oriented research created by Minneapolis Fed staff and specialists. The documents are a periodic show for the basic audience. The views expressed here are the ones associated with writers, certainly not those of other people within the Federal Reserve System.

Executive Summary

Banking institutions in the us have the possibility to improve liquidity unexpectedly and significantly—from $12 trillion to $36 trillion in money and simply accessed deposits—and could thus cause unexpected inflation. read more →