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TED Spread

Ben Bernanke, financial crisis, interest on reserves, Lehman Brothers, TED Spread
Booms & Busts, Economic History, The Fed & Central Banks

Interest On Reserves, Part III

George Selgin/January 12, 2016June 19, 2022

Why do I keep harping on interest on reserves?  Because, IMHO, the Fed's decision to start paying interest on reserves contributed at least as much as the failure of Lehman Brothers or any previous event did to the liquidity crunch of 2008:Q4, which led to a  deepening…

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