Thanks for the article guys! Liquidity seems to be a problem of late even for equities. Does the federal reserve print money, or does it print bank reserves? I.e. who is actually responsible for increasing the amount of money in "circulation"? Bank reserves would mean that banks are responsible for increasing money supply via credit, which may not be correlated to bank reserves? Trying to wrap my head around this idea, especially since the Euro dollar seems to be inverting, meaning less liquidity in the near term? What is the more relevant metric?
Thanks for the article guys! Liquidity seems to be a problem of late even for equities. Does the federal reserve print money, or does it print bank reserves? I.e. who is actually responsible for increasing the amount of money in "circulation"? Bank reserves would mean that banks are responsible for increasing money supply via credit, which may not be correlated to bank reserves? Trying to wrap my head around this idea, especially since the Euro dollar seems to be inverting, meaning less liquidity in the near term? What is the more relevant metric?