Tagged Questions

3
votes
1answer
31 views

Do banks keep their reserves at the Fed in cash or can they be kept in US Treasuries?

This chart at the St. Louis Fed has a lot of people worried about future inflation, because it represents idle money that, when lent out, could eventually flood the world with 10 - …
2
votes
3answers
83 views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
4
votes
3answers
251 views
1
vote
1answer
149 views

How does the concept of negative interest rates work? Are there any examples of this?

This term has been proposed in economics, what exactly is it? I thought interest rates never fall below zero. How would this work? Wouldn't it actually be a penalty to depositor …