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Should We Concern Yourself With Extra Reserves?

Should We Concern Yourself With Extra Reserves?

Economic Policy Papers derive from policy-oriented research generated by Minneapolis Fed staff and experts. The documents are an intermittent show for the basic market. The views expressed here are the ones regarding the writers, not always those of other people within the Federal Reserve System.

Executive Overview

Banking institutions in america have actually the possibility to improve liquidity abruptly and significantly—from $12 trillion to $36 trillion in money and simply accessed deposits—and could thus cause inflation that is sudden. […]

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