That is how the Fed has kept price inflation from going
Posted on: February 8, 2018 at 17:11:29 CT
JeffB
MU
Posts:
70121
Member For:
20.96 yrs
Level:
User
M.O.B. Votes:
0
crazy. Until recently it was illegal for them to pay interest on those reserves. Now they can "print" the money to buy the bonds and then can pay the banks to keep much of it out of circulation.
I think Japan originated that idea, and then the Fed begged congress to change the law allowing them to pay interest on the reserves as well.