February 19, 2018

Macro Musings 95: George Selgin on Fed Floors, Corridors, and Interest on Excess Reserves

Hosted by David Beckworth of the Mercatus Center, Macro Musings is a new podcast which pulls back the curtain on the important macroeconomic issues of the past, present, and future.

George Selgin is the Director of the Cato Institute Center for Monetary and Financial Alternatives and Professor Emeritus of Economics at the University of Georgia. Today, George joins the show to discuss the shrinking of the Fed’s balance sheet, the difference between corridor and floor systems in monetary policy, and the Fed’s practice of paying interest on excess reserves. David and George also discuss the issues of legality surrounding interest on reserves as well as why the Fed prefers a floor system to a corridor system and why George doesn’t!