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The Feds Ample Reserve Framework (Part 2) - The Demand for Reserves Curve
Автор: Econbusters
Загружено: 2022-06-30
Просмотров: 3771
Описание: To understand how the Fed implements monetary policy under an ample reserve framework (since 2008) one must understand the demand for reserves curve. The Fed now changes short-term interest rates by changing its administered rates (the interest on reserve balance rate and the overnight reverse repurchase agreement rate. When they change these administered rates they change the Federal Funds Rate floor. The floor is set within the federal funds rate target range.
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