Why is the reserve ratio 0% if the fed is trying to fight inflation?

353 views

The textbook I’m reading says that the reserve ratio is like the biggest “tool” that the fed has. They are increasing interest rates, but then they are having the reserve ratio at 0% and they are engaging in reverse repo to make sure that banks have plenty of cash. I don’t get it.

In: 25

8 Answers

Anonymous 0 Comments

Printing money, not printing money… it’s just saber rattling… zero reserve, is a nuclear bomb… Every investment bank on the planet, has more exposure, than currency in the entire world

You are viewing 1 out of 8 answers, click here to view all answers.