Interest rates have fluctuated significantly over time. After a period of high inflation in the late 1970s and early 1980s, interest rates entered a decline that lasted for nearly four decades. The federal funds rate—the primary tool for monetary policy in the United States—followed this trend, while also varying with cycles of economic recessions and expansions.| Liberty Street Economics
The authors review how to gauge the ampleness of reserves in the banking system using a new Reserve Demand Elasticity measure, to be published monthly by the New York Fed.| Liberty Street Economics