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Talk by Prof. Rodney Garrat, Former Vice President of the FED New York: »Segregated Balance Accounts« on December 08
25.11.2015
The Federal Reserve in the United States responded to the 2007-09 financial crisis and its aftermath with a variety of monetary policy measures that dramatically increased the supply of reserves. This talk describes a concept for a new monetary policy tool, segregated balance accounts (SBAs), which would improve competition in money markets, reduce system-wide balance sheet costs and could be used to strengthen the floor on overnight interest rates created by the payment of IOER (interest on excess reserves).