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Free reserves
(redirected from Bank reserves)

   Also found in: Wikipedia 0.04 sec.
Free reserves

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Yet central bank reserves relative to the size of the markets now are much smaller than twenty-five years ago.
In short, the Fed ignites inflation by increasing the supply of money and credit, stoking the flames by manipulating bank reserves, then shows up with sirens blaring and saying it has arrived to put out the blaze.
Nearly a decade ago The Economist described remaining central bank reserves as the "spent fuel of an obsolete monetary system," but more chilling for gold fans was the release last year of a paper by Lehman Brothers called "Reverse Alchemy.
 
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