The Question

The Question

by Samuel Paris -
Number of replies: 1

Is there a difference between the "Reserve Requirement" tool that the Fed uses, and the "Required Reserves" that is less than the monetary base after 2008? 

In reply to Samuel Paris

Re: The Question

by Danny Weaver -
I would say they are synonyms. If you want to split hairs like the book, the reserve requirement is a ratio the Fed used to require of banks, and the required reserves is the nominal amount that a particular bank would have to keep in reserves.
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