Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/79446
Authors: 
Todd, Walker F.
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Levy Economics Institute 763
Abstract: 
This working paper looks at excess reserves in historical context and analyzes whether they constitute a monetary policy problem for the Federal Reserve System (the Fed) or a potentially inflationary problem for the rest of us. Generally, this analysis shows that both absolute and relative sizes of excess reserves are a big problem for the Fed as well as the general public be-cause of their inflationary potential. However, like all contingencies, the timing and extent of the damage that reserve-driven inflation might cause are uncertain. It is even possible today to find articles in both scholarly circles and the popular press arguing either that the inflationary blow-off might never happen or that an increasing tendency toward prolonged deflation is the more probable outcome.
Subjects: 
excess reserves
Federal Reserve
Fed
European Central Bank
ECB
quantitative easing
monetary stimulus
JEL: 
E51
E52
E58
Document Type: 
Working Paper

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