Blogs > Liberty and Power > Interest on Reserves (Again!)

Jul 18, 2011 9:04 pm


Interest on Reserves (Again!)



Ellen Green, "Why Banks Aren't Lending: The Silent Liquidity Squeeze," is an excellent article on the consequences of paying interest on reserves, despite its proposed policy at the end. I stumbled on it because it favorably quotes me. Particularly important is its discussion of the impact on interbank lending, the ramifications of which hadn't occurred to me. David Henderson has a stimulating post on the article over at Econ Log.


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