The problem of excess reserves, then and now

Arbeitspapier

This working paper looks at excess reserves in historical context and analyzes whether they constitute a monetary policy problem for the Federal Reserve System (the Fed) or a potentially inflationary problem for the rest of us. Generally, this analysis shows that both absolute and relative sizes of excess reserves are a big problem for the Fed as well as the general public be-cause of their inflationary potential. However, like all contingencies, the timing and extent of the damage that reserve-driven inflation might cause are uncertain. It is even possible today to find articles in both scholarly circles and the popular press arguing either that the inflationary blow-off might never happen or that an increasing tendency toward prolonged deflation is the more probable outcome.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 763

Classification and Topics

• Classification: Wirtschaft ; Money Supply; Credit; Money Multipliers ; Monetary Policy ; Central Banks and Their Policies
• Subject: excess reserves ; Federal Reserve ; Fed ; European Central Bank ; ECB ; quantitative easing ; monetary stimulus

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Todd, Walker F.
• Event: Veröffentlichung
• (who): Levy Economics Institute of Bard College
• (where): Annandale-on-Hudson, NY
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/79446
• Last update: 10.03.2025, 11:44 AM CET