Home » Monetary policy » Allan Meltzer: We don’t need more excess reserves!

Allan Meltzer: We don’t need more excess reserves!

Allan Meltzer, author of several books on the history of US Federal Reserve, said with over 1 trillion $ excess reserves sitting on bank’s balance sheet, it would be stupid to add another 1 trillion dollars.

More monetary easing won’t be effective, the key is to remove the uncertainties in the economy so businesses can start investing again. Too much cash held by corporations, too little investment.


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