In summer 2008 the conventional view held the Fed had been very easy because the funds rate was low, but the five-year growth rate of bank reserves was slightly negative—meaning the Fed had actually been restrictive for five years and was strangling monetary policy, contributing to the recession.

factualpending

Speaker

Michael Belongia

Evidence Quote

the five-year growth rate of bank reserves was slightly negative at that point the Fed had been restrictive for a five-year period

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

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