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Econ Focus

First Quarter 2013

Where the Newly Created Money Went

Monetary expansion has led banks to park huge excess reserves at the Fed — for now

Related Links

Carpenter, Seth B., Jane E. Ihrig, Elizabeth C. Klee, Daniel W. Quinn, and Alexander H. Boote. "The Federal Reserve's Balance Sheet and Earnings: A Primer and Projections." Federal Reserve Board of Governors Finance and Economics Discussion Series No. 2013-01, January 2013.

Ennis, Huberto M., and Alexander L. Wolman. "Excess Reserves and the New Challenges for Monetary Policy." Federal Reserve Bank of Richmond Economic Brief No. EB10-03, March 2010.

Ennis, Huberto M., and Alexander L. Wolman. "Large Excess Reserves in the U.S.: A View from the Cross-Section of Banks." Federal Reserve Bank of Richmond Working Paper No. 12-05, Aug. 24, 2012.

Keister, Todd, and James J. McAndrews. "Why Are Banks Holding So Many Excess Reserves?" Federal Reserve Bank of New York Current Issues in Economics and Finance, December 2009.

Levin, Andrew, and John B. Taylor. "Falling Behind the Curve: A Positive Analysis of Stop-Start Monetary Policies and the Great Inflation." National Bureau of Economic Research Working Paper No. 15630, January 2010.

Contact Us

David A. Price (804) 697-8018