Feb 22, 2022·edited Feb 22, 2022

I couldn’t follow the statement “the banking system's capacity to absorb new reserves was reached, or nearly so. “. Any chance you’re planning to write a few lines on basel III? (Or why The FED can no longer create new reserves for banks )?

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See the link to Zoltan Pozsar's piece in https://neilson.substack.com/p/on-rrp. The capacity to absorb new reserves is about the SLR.

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