Atlanta’s Bostic lays out case for central banking with ‘ample’ reserves
Floor system has performed well and comes with several benefits, says Atlanta Fed president
There is a strong case for the Federal Reserve to maintain “ample” reserves in the financial system and use a floor to set monetary policy, according to the Federal Reserve Bank of Atlanta’s Raphael Bostic.
And there is no reason to think a floor system would perform worse than a corridor system, and several reasons to think it might be better, the Fed president said at a conference in San Francisco.
Under a floor system, the central bank provides plenty of spare liquidity to the banking
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