Tagged: excess


Central banks are damned if they raise interest rates and damned if they don’t, largely because their policies have resulted in both risk-taking (i.e. the creation of asset bubbles in stocks, bonds and real estate) and excess levels of debt.

Here’s a summary from the report which succinctly explains the potential debt crisis and how the world’s central banks have painted themselves into a “monetary policy corner”: “Otherwise, over long horizons, failing to constrain...


Will the Fed Keep Excess Reserves?

by Martin Armstrong QUESTION: Hi Martin, I recently asked an Economist for a major Financial Institute the following question. Will the Fed continue to pay interest on “excess reserves” after they start to reduce their...