Tag Archives: Excess reserves

The Dilemma of Monetary Tightening

Posted on August 24, 2014 by macromon

Interesting piece in the World Economics Association’s  Real World Economic Review on some of the difficulties the Fed faces when it begins tightening monetary policy.   They point out the policy contradiction that paying interest on excess reserves is an injection … Continue reading →

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Federal Reserve Assets Top $3 Trillion

Posted on January 24, 2013 by macromon

The Fed’s balance sheet just topped $3 trillion for the first time ever according to the Wall Street Journal, The U.S. Federal Reserve‘s balance sheet topped $3 trillion for the first time as the central bank continued with its easy-money … Continue reading →

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Would A Trader Buy This Chart?

Posted on January 10, 2013 by macromon

Note the bottoming of the M1 money multiplier after its long secular decline.  The multiplier is effectively the ratio of money created by the banking system (deposits) vs. money created by the central bank (reserves). It collapsed and fell to … Continue reading →

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Excess Reserves Declining

Posted on January 7, 2013 by macromon

Keep this one on your radar.   Excess reserves of depository institutions are beginning to decline,  down $183 billion, or 11.3 percent,  from their peak in November 2011 This is where much of the Fed’s money printing or balance sheet … Continue reading →

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