The Feds Ample Reserve Framework (Part 4) - Using Both the IORB and ON RRP to Set the Floor скачать в хорошем качестве

The Feds Ample Reserve Framework (Part 4) - Using Both the IORB and ON RRP to Set the Floor

To understand how the Fed implements monetary policy under an ample reserve framework (since 2008) one must understand the demand for reserves curve. The Fed now changes short-term interest rates by changing its administered rates. This video explains how the Fed uses both the IORB and the ON RRP to set the floor. What is new in this video is the inclusion of the ON RRP (the overnight reverse repurchase agreement). The graph shown looks like graphs students and teachers will encounter when learning this new policy framework. Up until this point, the video series has largely ignored the ON RRP. The next video, the fifth video, will explain the Fed's overnight reverse repurchase agreement facility.