Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The idea is: for financial stability you need a large reserve requirement, with reserves furnished by unlimited liquidity at the discount window.

Jake proposes that possibly a maximum justifiable level of reserve requirements is 100% of insured deposits, not of the entire balance sheet.

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Tue May 10th, 2011 at 01:55:25 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series