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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (46826)	11/1/2010 4:50:59 PM
From: DuckTapeSunroof	Respond to of 71588

Re: They can increase the money supply more even when interest rates are zero. Particularly with "quantitative easing" Yep! Sure can! (In the current macro environment though that is still likely to be more 'pushing on a string' though.) Re: "They could also effect put pressure to increase the velocity of money by not paying interest on reserve deposits any more" Yep! And they SHOULD! (Should have done that months ago!) (Still though... I would not want to OVER-ESTIMATE the beneficial effect from that tiny alteration though! What is the fed over-night deposit rate now? 0.1% or something like that? Hoo-hah!)