tag:blogger.com,1999:blog-2277215496195926573.post1253145907682123838..comments2024-01-01T07:41:51.347-08:00Comments on RALPHONOMICS: Bernanke claims that interest on reserves is not a subsidy of banks.Ralph Musgravehttp://www.blogger.com/profile/09443857766263185665noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2277215496195926573.post-58298480859972746792016-02-18T01:59:03.911-08:002016-02-18T01:59:03.911-08:00David, Strikes me the return on reserves and USTs ...David, Strikes me the return on reserves and USTs will never be EXACTLY the same, though when it comes to USTs within a month of maturity, the return will be very close. But basically I’m objecting to anyone being rewarded for hoarding cash. If as an alternative they buy some sort of bond, USTs or anything else, and can earn some interest, that’s OK with me. Hope that makes sense.Ralph Musgravehttps://www.blogger.com/profile/09443857766263185665noreply@blogger.comtag:blogger.com,1999:blog-2277215496195926573.post-66298565838290091572016-02-17T18:03:37.549-08:002016-02-17T18:03:37.549-08:00Ralph, if the banks held 25bp USTs instead of 25bp...Ralph, if the banks held 25bp USTs instead of 25bp reserves, are they not rewarded in the same way? In the first case, the Fed pays the interest, in the second, the treasury pays. Does it matter who pays? David Andolfattohttps://www.blogger.com/profile/12138572028306561024noreply@blogger.com