Tag: Central Bank’s Balance Sheet

Former Fed Governor Jeremy Stein explain to us his recent research “The Federal Reserve's Balance Sheet as a Financial-Stability Tool” coauthored with Robin Greenwood and Samuel Hanson.

Nothing would make us more proud than seeing intelligent and informed people discuss the ideas we have put forth in the interview series. So...

This is the eighth installment of our interview series “Where is the General Theory of the 21st Century?”In this installment, we continue our talk...

The Saturated Level of Reserves or efficient level of reserves, is the point which the opportunity cost for banks to hold reserves disappears, and became indifferent towards holding more reserves. The reserve demand curve beyond this point becomes close to horizontal.

The above figure shows the balance sheet of four major central banks from 2005 to 2015. Above the horizontal axis is the asset side...