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To: AndyJackson

The reserve requirements fluctuate a bit which is one mechanism the Fed has as you suggest. But over time the reserve requirements have plummeted from about 25% in the 60’s to about 6% or less today. The consequences are a less effective tool and a contribution to the large increase in overall debt (measured against GDP or other comparisons).


69 posted on 12/04/2007 4:31:01 AM PST by palmer
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To: palmer
But over time the reserve requirements have plummeted from about 25% in the 60’s to about 6% or less today

I am not talking about reserve requirements as in percentage, which the Fed does not change very frequently. I am talking about actual reserves (money on deposit with the Fed or vault cash held in reserve). That is what the Fed actually manages.

71 posted on 12/04/2007 5:08:13 AM PST by AndyJackson
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To: palmer; AndyJackson
"...reserve requirements have plummeted from about 25% in the 60’s to about 6% or less today. The consequences are a less effective tool and a contribution to the large increase in overall debt..."

The fed has a bunch of different reserve requirements (feds reserve req. list here); here's one plot--

 

but they don't have that percentage that you talked about; a link would be a big help in following what you're saying, especially if you're not getting the data from the fed.  Same for when you talked about "the large increase in overall debt", whether you meant private debt, public debt, total (gov't, business, private, financial, etc.) debt...

76 posted on 12/04/2007 8:38:26 AM PST by expat_panama
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