3,882
edits
Liquidity: Difference between revisions
→Bank Reserves
| Line 9: | Line 9: | ||
The correlation between the stock market and bank reserves has been closely follow since it suggests the sock market follows the movement of reserves. | The correlation between the stock market and bank reserves has been closely follow since it suggests the sock market follows the movement of reserves. | ||
* As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions, it has declined$ | * As an effect of QT, Bank reserves are also declining, they stand at 3.1 Trillions, it has declined$ trillion since November 2021, a 25% decline, | ||
* It has been stable the last 3 months, which could explain some of the financial easing that we saw in January 2023 <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref> | * It has been stable the last 3 months at $3 trillions, which could explain some of the financial easing that we saw in January 2023 <ref>https://fred.stlouisfed.org/series/TOTRESNS</ref> | ||
* Bank reserves are still above the pre-pandemic level | * Bank reserves are still above the pre-pandemic level | ||