Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In what sense has interest rates become irrelevant?

The rates at which Banks are lending are increasingly parting company from the Central Bank rates. That's because the premium they charge for their implicit guarantee has gone up with the perceived likelihood of default.

Why do you say that if interest rates are irrelevant so are reserve requirements?

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue May 6th, 2008 at 04:44:09 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series