Excess reserves and the new challenges for monetary policy
Abstract: Interest on reserves allows the Federal Reserve to pursue an appropriate monetary policy even with a high level of excess reserves. However, a banking system flush with excess reserves can raise the risk of monetary policy getting behind the curve.
File(s): File format is application/pdf http://www.richmondfed.org/publications/research/economic_brief/2010/pdf/eb_10-03.pdf
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2010
Order Number: 10-03