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A perspective on possible Fed exit strategies

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  • Daniel L. Thornton

Abstract

As the IOER rate increases, less money will be given to the Treasury and more will be given to banks for the sole purpose of holding excess reserves (i.e., idle deposits at Federal Reserve Banks).

Suggested Citation

  • Daniel L. Thornton, 2013. "A perspective on possible Fed exit strategies," Economic Synopses, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedles:y:2013:n:21
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    File URL: http://research.stlouisfed.org/publications/es/13/ES_21_2013-08-02.pdf
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    Cited by:

    1. Thornton, Daniel L., 2014. "Monetary policy: Why money matters (and interest rates don’t)," Journal of Macroeconomics, Elsevier, vol. 40(C), pages 202-213.
    2. Lothian, James R., 2014. "Monetary policy and the twin crises," Journal of International Money and Finance, Elsevier, vol. 49(PB), pages 197-210.
    3. Gabriel Stein, 2018. "The Challenges for Central Banks," Economic Affairs, Wiley Blackwell, vol. 38(1), pages 131-138, February.

    More about this item

    Keywords

    Interest rates; Bank reserves;

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