Crypto Voices
Crypto Voices
Matthew Mezinskis
PE54: Where was the hyperinflation in 2008? (IX)
16 minutes Posted Apr 11, 2023 at 3:52 pm.
Intro
Exploding reserves (and balance sheet)
What happens when supply outstrips demand...
"Tool 1:" Interest on required reserves
"Tool 2:" Interest on excess reserves
Zero interest rate policy years
Trying to "normalize"...
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16:56
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Show notes
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This is the fifty-fourth video installment from Porkopolis Economics, covering macro and money, from the creator of the Crypto Voices podcast.
Contents
Here we look at the Federal Reserve's weekly balance sheet versus its base policy interest rate in the 1980s until and just after the Global Financial Crisis, which at this time morphed from being the Discount Rate, to the Fed Funds Rate.
Many were confused why such extraordinary money printing by the US central bank did not result in hyperinflation... the answer was a new policy tool of the Federal Reserve: Interest on bank reserves.
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