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To Combat Recession, the Fed Should Stop Paying Interest on Bank Reserves…Now

To Combat Recession, the Fed Should Stop Paying Interest on Bank Reserves…Now

COMMENTARYMar 19, 2020In the last week, the Federal Reserve has taken several strong measures to prevent the coronavirus epidemic from leading to a broad economic slowdown.Just like in the early stages of the 2008 crisis, now is not the time to be worried about creating too much inflation.All of these moves are meant to provide liquidity so that the Fed can help stem a broader economic collapse. There is no reason to wait.In the last week, the Federal Reserve has taken several strong measures to prevent the coronavirus epidemic from leading to a broad economic slowdown. For the most part,...

July 15, 2020
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