Playing Catchup: "Noahpinion: Is the interest rate on reserves holding the economy back?"

It's nice to see the professors catching up.

Noahpinion: Is the interest rate on reserves holding the economy back?.

Here's what I wrote in January, 2013:

What the Fed could do is charge interest on those reserves, which would cause the banks to want to move money out of excess reserves into regular reserves reflecting new loans. The only problem there is that the banks still need to be required to keep lending standards high enough to avoid another huge bubble. So, with what profits would the banks be able to paid the Fed interest on excess reserves before those reserves are moved a result of sound loans to solvent borrowers since there aren't enough entities in financially sound enough shape to meet all of the new higher and properly improved lending standards?

On: Hoisington Investment: Taxes: Austerity or Not?

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  • Tom Usher

    About Tom Usher

    Employment: 2008 - present, website developer and writer. 2015 - present, insurance broker. Education: Arizona State University, Bachelor of Science in Political Science. City University of Seattle, graduate studies in Public Administration. Volunteerism: 2007 - present, president of the Real Liberal Christian Church and Christian Commons Project.
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