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 BelongiaEvidence 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”
Created: 6/15/2026, 9:37:51 AM
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