Rudy Fichtenbaum wrote:
> You result does not surprise me. I have been following excess reserves since
> the beginning of the crisis and they are off the charts. If you graph excess
> reserves a few years before the crisis and then into the crisis you cannot
> even see excess reserves before the crisis because in relative terms they
> were so small compared to what they are today.

right: it's not the low number that's weird. It's being under one.

By the way, I read an article years ago which talks about an "excess
reserve trap" during the early 1930s, in which banks clung to their
reserves for dear life. (This is a species of the liquidity trap, but
i usually ignored.)

-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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