No, because bank reserves can go up. And by increasing its interest rates, the F... | Hacker News

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ummonk on Dec 12, 2022 | parent | context | favorite | on: What if your entire worldview was just because of ...

No, because bank reserves can go up. And by increasing its interest rates, the Fed reserve is encouraging banks to put more money in reserve accounts.

neilwilson on Dec 12, 2022 [–]

Bank reserves cannot go up in aggregate unless government spends more than it taxes and doesn't issue bonds to drain those reserves.

Bank reserves are on the asset side of the bank's balance sheet. Deposits are on the liability side.

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