"The problem with socialism is you eventually run out of other people's money" - Margaret Thatcher
"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design" - F.A. Hayek
Thursday, March 19, 2009
Neat little presentation re: what the Fed annnounced on Wednesday.
From Greg Mankiw's Blog. The answer to the last qustion posed by the narrator is Ben Bernanke, that's who.
Aren't banks just going to continue to hoard this increase in the monetary base because of the interest that is now paid on reserves? What are your thoughts on the idea to start charging penalty rates on excess reserves?
Aren't banks just going to continue to hoard this increase in the monetary base because of the interest that is now paid on reserves? What are your thoughts on the idea to start charging penalty rates on excess reserves?
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