The Fed's Balancing Act
Scott and Russ discuss the Federal Reserve's decision to not cut interest rates during the 2008 financial crisis and the impact of paying interest on reserves. They explore the potential consequences of this policy on inflation, recession, and the banking system, highlighting the importance of understanding the empirical evidence and considering the individual banks' perspectives.In this clip
From this podcast
EconTalk
Scott Sumner on Money and the Fed
Related Questions
How does the central bank's policy influence interest rates in the context of the episode Brian Jimerson #4 and the clip Economic Crisis, Currency Trading from Prof G Markets: Margin Calls, Private Jets, Meta Teams Up With Microsoft, and the clip Fed's Impact on Economy?
Should banks hold 100% reserves as discussed in the episode Richard Posner on the Financial Crisis and the clip The Fed's Dilemma?
How does the central bank's policy influence interest rates in the context of the episode Prof G Markets: Margin Calls, Private Jets, Meta Teams Up With Microsoft, and Unpacking the Fed and the clip Fed's Impact on Economy?