Nice work Rishi. I reckon if the Fed really wants to know where the minimum amount of reserves is all they have to do is stop paying IOER, drop the rate on RRP to their policy floor and let the banks dump any excess in RRP. Pretty sure the banks with get rid of any reserves they don't need if they're not paid to hold them in quick time.
Nice work Rishi. I reckon if the Fed really wants to know where the minimum amount of reserves is all they have to do is stop paying IOER, drop the rate on RRP to their policy floor and let the banks dump any excess in RRP. Pretty sure the banks with get rid of any reserves they don't need if they're not paid to hold them in quick time.