Bank Reserves and Basel III

There's a good reason why central banks have gotten away with it, so far.

On my own macro website newworldeconomics.com, I added a new item “Bank Reserves and Basel III, 2021.” I’m calling this background info for this month’s Polaris Letter. I originally addressed this publicly in 2019, and I think that the Fed’s recent actions can be understood in this light. A lot has happened since 2019, so let’s update it for today.

https://newworldeconomics.com/bank-reserves-and-basel-iii-2021/