Antonio Fatas
@antoniofatas.bsky.social
Professor of Economics at INSEAD. Interested in global macroeconomic issues.
I am not a big fan of net debt/net interest calculation exactly for that reason: there are obligations associated to them. Yes, you can tier interest on reserves but that changes behavior. You can also tax banks and get revenue from them.
October 23, 2025 at 3:13 PM
I am not a big fan of net debt/net interest calculation exactly for that reason: there are obligations associated to them. Yes, you can tier interest on reserves but that changes behavior. You can also tax banks and get revenue from them.
Is that right? Fed pays an interest on reserves that (almost) matches what it receives from the government. The two rates are not the same but you cannot fully exclude 100% of these payments.
October 23, 2025 at 2:52 PM
Is that right? Fed pays an interest on reserves that (almost) matches what it receives from the government. The two rates are not the same but you cannot fully exclude 100% of these payments.