[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.27,0:00:01.92,Default,,0000,0000,0000,,- [Instructor] What we're\Ngonna do in this video
Dialogue: 0,0:00:01.92,0:00:04.26,Default,,0000,0000,0000,,is talk about some interesting things
Dialogue: 0,0:00:04.26,0:00:07.38,Default,,0000,0000,0000,,that have happened since\N2008, and in particular,
Dialogue: 0,0:00:07.38,0:00:12.06,Default,,0000,0000,0000,,we're gonna talk about what\Nan ample reserves regime is,
Dialogue: 0,0:00:12.06,0:00:15.60,Default,,0000,0000,0000,,but even more importantly, what\Nits actual implications are
Dialogue: 0,0:00:15.60,0:00:18.30,Default,,0000,0000,0000,,and how you can analyze\Nit with a graph like this.
Dialogue: 0,0:00:18.30,0:00:20.82,Default,,0000,0000,0000,,So let's just make sure we\Nhave our bearings first.
Dialogue: 0,0:00:20.82,0:00:25.82,Default,,0000,0000,0000,,So the horizontal axis right\Nover here is reserve balances,
Dialogue: 0,0:00:25.89,0:00:29.91,Default,,0000,0000,0000,,and then the vertical axis\Nhere is interest rates.
Dialogue: 0,0:00:29.91,0:00:32.01,Default,,0000,0000,0000,,So for the first part of this discussion,
Dialogue: 0,0:00:32.01,0:00:35.64,Default,,0000,0000,0000,,let's ignore everything that\Nwe see in gray over here.
Dialogue: 0,0:00:35.64,0:00:36.72,Default,,0000,0000,0000,,That's what we're gonna talk about
Dialogue: 0,0:00:36.72,0:00:39.18,Default,,0000,0000,0000,,when we talk about the\Nample reserves regimes.
Dialogue: 0,0:00:39.18,0:00:43.11,Default,,0000,0000,0000,,Let's say we're talking\Nabout a period pre-2008.
Dialogue: 0,0:00:43.11,0:00:44.88,Default,,0000,0000,0000,,And in that situation,
Dialogue: 0,0:00:44.88,0:00:48.72,Default,,0000,0000,0000,,you could imagine the more\Nreserve balances you have,
Dialogue: 0,0:00:48.72,0:00:52.35,Default,,0000,0000,0000,,the lower the demand is\Nfor reserve balances,
Dialogue: 0,0:00:52.35,0:00:54.96,Default,,0000,0000,0000,,because if more banks\Nare sitting on reserves,
Dialogue: 0,0:00:54.96,0:00:58.95,Default,,0000,0000,0000,,well, then they don't\Nneed to go into the market
Dialogue: 0,0:00:58.95,0:01:01.14,Default,,0000,0000,0000,,and borrow reserves as much.
Dialogue: 0,0:01:01.14,0:01:03.45,Default,,0000,0000,0000,,And so what you would naturally expect
Dialogue: 0,0:01:03.45,0:01:08.13,Default,,0000,0000,0000,,is as reserve balances\Nincrease, demand goes down
Dialogue: 0,0:01:08.13,0:01:11.58,Default,,0000,0000,0000,,and of course, the actual interest
Dialogue: 0,0:01:11.58,0:01:15.51,Default,,0000,0000,0000,,that people would need to\Npay in order to get reserves
Dialogue: 0,0:01:15.51,0:01:17.31,Default,,0000,0000,0000,,if they're running low would go down.
Dialogue: 0,0:01:17.31,0:01:20.10,Default,,0000,0000,0000,,So, for example, let's\Nignore this red line here.
Dialogue: 0,0:01:20.10,0:01:25.10,Default,,0000,0000,0000,,Let's imagine a pre-2008 scenario\Nwhere the actual reserves,
Dialogue: 0,0:01:25.77,0:01:28.44,Default,,0000,0000,0000,,the supply of reserves looks like this.
Dialogue: 0,0:01:28.44,0:01:31.26,Default,,0000,0000,0000,,And of course, the Federal\NReserve can determine this
Dialogue: 0,0:01:31.26,0:01:34.32,Default,,0000,0000,0000,,by printing money,\Nincreasing its balance sheet
Dialogue: 0,0:01:34.32,0:01:35.70,Default,,0000,0000,0000,,or contracting its balance sheet.
Dialogue: 0,0:01:35.70,0:01:39.00,Default,,0000,0000,0000,,They can do that as they see fit.
Dialogue: 0,0:01:39.00,0:01:40.68,Default,,0000,0000,0000,,So in this situation right over here,
Dialogue: 0,0:01:40.68,0:01:43.71,Default,,0000,0000,0000,,these are the total reserves\Nthat are in the system
Dialogue: 0,0:01:43.71,0:01:45.66,Default,,0000,0000,0000,,that the Federal Reserve can decide.
Dialogue: 0,0:01:45.66,0:01:50.66,Default,,0000,0000,0000,,And you have now a market\Nrate for overnight reserves.
Dialogue: 0,0:01:51.27,0:01:52.71,Default,,0000,0000,0000,,So if a bank is running low,
Dialogue: 0,0:01:52.71,0:01:54.12,Default,,0000,0000,0000,,let's say they had a lot of withdrawals,
Dialogue: 0,0:01:54.12,0:01:56.73,Default,,0000,0000,0000,,they need to meet their\Nreserve requirements back then,
Dialogue: 0,0:01:56.73,0:01:59.91,Default,,0000,0000,0000,,well, then they would go\Ninto the, quote, money market
Dialogue: 0,0:01:59.91,0:02:03.09,Default,,0000,0000,0000,,and they would borrow some\Nof that money from a bank
Dialogue: 0,0:02:03.09,0:02:05.64,Default,,0000,0000,0000,,that has excess reserves.
Dialogue: 0,0:02:05.64,0:02:06.81,Default,,0000,0000,0000,,Now, you might be wondering,
Dialogue: 0,0:02:06.81,0:02:09.57,Default,,0000,0000,0000,,why does this curve, this\Nblue curve flatten out
Dialogue: 0,0:02:09.57,0:02:11.64,Default,,0000,0000,0000,,as you go further and further to the left?
Dialogue: 0,0:02:11.64,0:02:13.65,Default,,0000,0000,0000,,Why doesn't it do something like this?
Dialogue: 0,0:02:13.65,0:02:16.20,Default,,0000,0000,0000,,If the reserve balances are\Nlower, and lower, lower,
Dialogue: 0,0:02:16.20,0:02:17.67,Default,,0000,0000,0000,,you'd think people would charge higher
Dialogue: 0,0:02:17.67,0:02:21.84,Default,,0000,0000,0000,,and higher interest rates\Nto land reserves overnight.
Dialogue: 0,0:02:21.84,0:02:25.35,Default,,0000,0000,0000,,Well, what puts a cap on\Nthis is the discount window.
Dialogue: 0,0:02:25.35,0:02:27.42,Default,,0000,0000,0000,,This primary credit rate, this is the rate
Dialogue: 0,0:02:27.42,0:02:30.24,Default,,0000,0000,0000,,that a bank in good\Nstanding, a strong bank,
Dialogue: 0,0:02:30.24,0:02:31.68,Default,,0000,0000,0000,,you also have a secondary credit rate
Dialogue: 0,0:02:31.68,0:02:34.14,Default,,0000,0000,0000,,for slightly weaker bank,\Nthat would be a higher rate,
Dialogue: 0,0:02:34.14,0:02:35.22,Default,,0000,0000,0000,,but this is essentially
Dialogue: 0,0:02:35.22,0:02:37.44,Default,,0000,0000,0000,,what banks can go to the Federal Reserve
Dialogue: 0,0:02:37.44,0:02:39.69,Default,,0000,0000,0000,,and borrow directly\Nfrom the Federal Reserve
Dialogue: 0,0:02:39.69,0:02:41.55,Default,,0000,0000,0000,,at the discount window.
Dialogue: 0,0:02:41.55,0:02:44.25,Default,,0000,0000,0000,,So that discount window\Nrate right over here,
Dialogue: 0,0:02:44.25,0:02:47.73,Default,,0000,0000,0000,,that essentially puts a cap on\Nthe overnight borrowing rate,
Dialogue: 0,0:02:47.73,0:02:50.79,Default,,0000,0000,0000,,a cap on the rate that\Na bank would have to pay
Dialogue: 0,0:02:50.79,0:02:52.38,Default,,0000,0000,0000,,in order to borrow reserves.
Dialogue: 0,0:02:52.38,0:02:54.54,Default,,0000,0000,0000,,And so that's why you see the curve
Dialogue: 0,0:02:54.54,0:02:57.36,Default,,0000,0000,0000,,essentially gets limited by that.
Dialogue: 0,0:02:57.36,0:03:01.47,Default,,0000,0000,0000,,But now let's think about\Nwhat happened in 2008,
Dialogue: 0,0:03:01.47,0:03:04.98,Default,,0000,0000,0000,,and to understand that,\NI always get a kick
Dialogue: 0,0:03:04.98,0:03:07.62,Default,,0000,0000,0000,,out of looking at the total\Nassets of the Federal Reserve.
Dialogue: 0,0:03:07.62,0:03:10.35,Default,,0000,0000,0000,,This is essentially the Federal\NReserve's balance sheet.
Dialogue: 0,0:03:10.35,0:03:12.60,Default,,0000,0000,0000,,You can view this as how much base money
Dialogue: 0,0:03:12.60,0:03:14.43,Default,,0000,0000,0000,,they have put into circulation.
Dialogue: 0,0:03:14.43,0:03:16.35,Default,,0000,0000,0000,,And I know these numbers are hard to read,
Dialogue: 0,0:03:16.35,0:03:18.15,Default,,0000,0000,0000,,so let me write it down for you.
Dialogue: 0,0:03:18.15,0:03:21.62,Default,,0000,0000,0000,,Out here, that is 2008, 2008.
Dialogue: 0,0:03:23.79,0:03:26.28,Default,,0000,0000,0000,,And the rightmost point,
Dialogue: 0,0:03:26.28,0:03:28.32,Default,,0000,0000,0000,,we are about three fourths of the way
Dialogue: 0,0:03:28.32,0:03:33.12,Default,,0000,0000,0000,,through 2023 over here.
Dialogue: 0,0:03:33.12,0:03:35.91,Default,,0000,0000,0000,,Now, you see something\Ninteresting happening
Dialogue: 0,0:03:35.91,0:03:40.91,Default,,0000,0000,0000,,essentially a little\Nbit midway through 2008.
Dialogue: 0,0:03:41.13,0:03:43.71,Default,,0000,0000,0000,,The balance sheet increases significantly.
Dialogue: 0,0:03:43.71,0:03:46.95,Default,,0000,0000,0000,,We go from roughly 1\Ntrillion of base money
Dialogue: 0,0:03:46.95,0:03:50.52,Default,,0000,0000,0000,,to $2 trillion of base money.
Dialogue: 0,0:03:50.52,0:03:52.77,Default,,0000,0000,0000,,So essentially what the\NFederal Reserve was doing,
Dialogue: 0,0:03:52.77,0:03:54.75,Default,,0000,0000,0000,,they were taking this vertical line
Dialogue: 0,0:03:54.75,0:03:58.02,Default,,0000,0000,0000,,and they were pushing it\Nfar to the right over here.
Dialogue: 0,0:03:58.02,0:04:00.90,Default,,0000,0000,0000,,Now, you might think historically\Nwhy were they doing that.
Dialogue: 0,0:04:00.90,0:04:03.96,Default,,0000,0000,0000,,Well, some of you might\Nremember, we had banks failing.
Dialogue: 0,0:04:03.96,0:04:05.70,Default,,0000,0000,0000,,It had a financial crisis.
Dialogue: 0,0:04:05.70,0:04:08.79,Default,,0000,0000,0000,,They wanted to shore up not\Njust the banking system,
Dialogue: 0,0:04:08.79,0:04:10.50,Default,,0000,0000,0000,,but also the economy.
Dialogue: 0,0:04:10.50,0:04:13.65,Default,,0000,0000,0000,,So the Federal Reserve just\Nstarted printing money,
Dialogue: 0,0:04:13.65,0:04:16.77,Default,,0000,0000,0000,,and it put us into a new territory,
Dialogue: 0,0:04:16.77,0:04:19.71,Default,,0000,0000,0000,,a territory of ample reserves.
Dialogue: 0,0:04:19.71,0:04:22.83,Default,,0000,0000,0000,,That's why it's called\Nan ample reserves regime.
Dialogue: 0,0:04:22.83,0:04:24.81,Default,,0000,0000,0000,,Now, there's an interesting\Nquestion, though.
Dialogue: 0,0:04:24.81,0:04:27.12,Default,,0000,0000,0000,,If you go to a situation\Nof ample reserves,
Dialogue: 0,0:04:27.12,0:04:28.53,Default,,0000,0000,0000,,and that's essentially the situation
Dialogue: 0,0:04:28.53,0:04:32.55,Default,,0000,0000,0000,,that we could imagine right over here,
Dialogue: 0,0:04:32.55,0:04:35.43,Default,,0000,0000,0000,,well, if you just had your\Ntraditional demand curve here,
Dialogue: 0,0:04:35.43,0:04:38.37,Default,,0000,0000,0000,,this curve would've just kept\Ngoing down and down and down.
Dialogue: 0,0:04:38.37,0:04:40.92,Default,,0000,0000,0000,,And essentially there's so\Nmuch reserves in the system
Dialogue: 0,0:04:40.92,0:04:42.66,Default,,0000,0000,0000,,that the demand would go so low
Dialogue: 0,0:04:42.66,0:04:44.34,Default,,0000,0000,0000,,that if a bank had access reserves,
Dialogue: 0,0:04:44.34,0:04:46.53,Default,,0000,0000,0000,,it would pretty much get\Nlittle to no interest
Dialogue: 0,0:04:46.53,0:04:48.15,Default,,0000,0000,0000,,on those reserves.
Dialogue: 0,0:04:48.15,0:04:50.64,Default,,0000,0000,0000,,Now, that's a tough\Nsituation in and of itself
Dialogue: 0,0:04:50.64,0:04:53.22,Default,,0000,0000,0000,,because some of those banks\Nneeded that interest on reserves
Dialogue: 0,0:04:53.22,0:04:55.35,Default,,0000,0000,0000,,because, once again, they\Nwere all in a tough situation.
Dialogue: 0,0:04:55.35,0:04:56.82,Default,,0000,0000,0000,,And also, you want a situation
Dialogue: 0,0:04:56.82,0:04:59.22,Default,,0000,0000,0000,,where banks could probably\Nattract some depositors
Dialogue: 0,0:04:59.22,0:05:01.26,Default,,0000,0000,0000,,by hopefully giving some interest
Dialogue: 0,0:05:01.26,0:05:03.15,Default,,0000,0000,0000,,to the depositors themselves.
Dialogue: 0,0:05:03.15,0:05:05.73,Default,,0000,0000,0000,,That also would strengthen\Nthe banking system.
Dialogue: 0,0:05:05.73,0:05:08.94,Default,,0000,0000,0000,,So that's when in this\Nample reserves regime,
Dialogue: 0,0:05:08.94,0:05:11.10,Default,,0000,0000,0000,,the Federal Reserve did something else.
Dialogue: 0,0:05:11.10,0:05:13.74,Default,,0000,0000,0000,,They said, "Okay, banks,\Nit is no longer the case
Dialogue: 0,0:05:13.74,0:05:15.51,Default,,0000,0000,0000,,that the only way that\Nyou could get interest
Dialogue: 0,0:05:15.51,0:05:18.42,Default,,0000,0000,0000,,on your reserves is by\Nlending it to other banks.
Dialogue: 0,0:05:18.42,0:05:21.09,Default,,0000,0000,0000,,We're going to allow you\Nto take those reserves
Dialogue: 0,0:05:21.09,0:05:24.87,Default,,0000,0000,0000,,and deposit them with us,\Nwith the Federal Reserve,
Dialogue: 0,0:05:24.87,0:05:28.20,Default,,0000,0000,0000,,and we will give you\Ninterest on those reserves."
Dialogue: 0,0:05:28.20,0:05:31.89,Default,,0000,0000,0000,,That's what this IOR is,\Ninterest on reserves.
Dialogue: 0,0:05:31.89,0:05:35.28,Default,,0000,0000,0000,,And so if you are a banking institution,
Dialogue: 0,0:05:35.28,0:05:39.36,Default,,0000,0000,0000,,this essentially set up\Na floor on the interest
Dialogue: 0,0:05:39.36,0:05:41.94,Default,,0000,0000,0000,,that you would get on your reserves.
Dialogue: 0,0:05:41.94,0:05:44.46,Default,,0000,0000,0000,,Now, the question you\Nmight be wondering is,
Dialogue: 0,0:05:44.46,0:05:45.93,Default,,0000,0000,0000,,why doesn't this blue line then
Dialogue: 0,0:05:45.93,0:05:48.21,Default,,0000,0000,0000,,just flatten out right over there?
Dialogue: 0,0:05:48.21,0:05:50.58,Default,,0000,0000,0000,,And in some more simplified diagrams,
Dialogue: 0,0:05:50.58,0:05:52.53,Default,,0000,0000,0000,,you will actually see that.
Dialogue: 0,0:05:52.53,0:05:56.01,Default,,0000,0000,0000,,But it turns out that banks\Nare not the only participants
Dialogue: 0,0:05:56.01,0:05:57.27,Default,,0000,0000,0000,,in the money market.
Dialogue: 0,0:05:57.27,0:05:58.41,Default,,0000,0000,0000,,You have other people
Dialogue: 0,0:05:58.41,0:06:00.78,Default,,0000,0000,0000,,who are potentially\Nlending reserves to banks,
Dialogue: 0,0:06:00.78,0:06:02.52,Default,,0000,0000,0000,,and they don't have access
Dialogue: 0,0:06:02.52,0:06:05.19,Default,,0000,0000,0000,,to depositing their reserves\Nwith the Federal Reserve.
Dialogue: 0,0:06:05.19,0:06:07.23,Default,,0000,0000,0000,,So that's not a floor on them.
Dialogue: 0,0:06:07.23,0:06:09.30,Default,,0000,0000,0000,,The Federal Reserve\Nintroduced another rate.
Dialogue: 0,0:06:09.30,0:06:12.33,Default,,0000,0000,0000,,I won't go into the details\Nof what on RRP stands for.
Dialogue: 0,0:06:12.33,0:06:14.49,Default,,0000,0000,0000,,These essentially repurchase agreements.
Dialogue: 0,0:06:14.49,0:06:17.19,Default,,0000,0000,0000,,This is essentially the\NFederal Reserve giving interest
Dialogue: 0,0:06:17.19,0:06:21.84,Default,,0000,0000,0000,,to non-banking institutions\Non reserves that they place
Dialogue: 0,0:06:21.84,0:06:23.79,Default,,0000,0000,0000,,with the actual Federal Reserve.
Dialogue: 0,0:06:23.79,0:06:27.96,Default,,0000,0000,0000,,So this places a hard floor,\N'cause even those folks,
Dialogue: 0,0:06:27.96,0:06:29.46,Default,,0000,0000,0000,,they would never wanna lend below this
Dialogue: 0,0:06:29.46,0:06:31.23,Default,,0000,0000,0000,,because they could get that much interest
Dialogue: 0,0:06:31.23,0:06:33.33,Default,,0000,0000,0000,,with the Federal Reserve.
Dialogue: 0,0:06:33.33,0:06:35.52,Default,,0000,0000,0000,,Now, the next question\Nyou might be wondering is,
Dialogue: 0,0:06:35.52,0:06:39.99,Default,,0000,0000,0000,,all right, if we are out here\Nin this ample reserves regime,
Dialogue: 0,0:06:39.99,0:06:43.26,Default,,0000,0000,0000,,traditionally the Federal\NReserve could change
Dialogue: 0,0:06:43.26,0:06:45.57,Default,,0000,0000,0000,,the federal funds rate, the target rate
Dialogue: 0,0:06:45.57,0:06:48.54,Default,,0000,0000,0000,,by moving this red line\Nto the left and the right.
Dialogue: 0,0:06:48.54,0:06:51.18,Default,,0000,0000,0000,,If you're in a non-ample reserves regime,
Dialogue: 0,0:06:51.18,0:06:54.69,Default,,0000,0000,0000,,if you move this red line to the left,
Dialogue: 0,0:06:54.69,0:06:55.92,Default,,0000,0000,0000,,well, what's gonna happen?
Dialogue: 0,0:06:55.92,0:06:57.96,Default,,0000,0000,0000,,You're going to essentially increase
Dialogue: 0,0:06:57.96,0:06:59.91,Default,,0000,0000,0000,,the overnight borrowing rate,
Dialogue: 0,0:06:59.91,0:07:02.40,Default,,0000,0000,0000,,and that would constrict the economy.
Dialogue: 0,0:07:02.40,0:07:03.96,Default,,0000,0000,0000,,And if you move it to the right,
Dialogue: 0,0:07:03.96,0:07:06.93,Default,,0000,0000,0000,,you're going to decrease the\Novernight borrowing rate,
Dialogue: 0,0:07:06.93,0:07:09.27,Default,,0000,0000,0000,,and that would stimulate the economy.
Dialogue: 0,0:07:09.27,0:07:10.92,Default,,0000,0000,0000,,If you're out here on the right side,
Dialogue: 0,0:07:10.92,0:07:14.22,Default,,0000,0000,0000,,if you move this vertical red\Nline to the right or the left,
Dialogue: 0,0:07:14.22,0:07:16.68,Default,,0000,0000,0000,,it's not going to change\Nthe overnight borrowing rate
Dialogue: 0,0:07:16.68,0:07:18.12,Default,,0000,0000,0000,,because you're essentially\Ngoing to be hugging
Dialogue: 0,0:07:18.12,0:07:20.67,Default,,0000,0000,0000,,this pretty flat blue line.
Dialogue: 0,0:07:20.67,0:07:23.67,Default,,0000,0000,0000,,And things have gotten\Neven more ample since 2008.
Dialogue: 0,0:07:23.67,0:07:26.25,Default,,0000,0000,0000,,We went from roughly 1\Ntrillion to 2 trillion,
Dialogue: 0,0:07:26.25,0:07:30.24,Default,,0000,0000,0000,,and then out here we are getting,\Napproaching 8, 9 trillion.
Dialogue: 0,0:07:30.24,0:07:32.40,Default,,0000,0000,0000,,And you might say, "Well, what\Nhappened right over here?"
Dialogue: 0,0:07:32.40,0:07:35.43,Default,,0000,0000,0000,,Well, that was the COVID\Npandemic, where, once again,
Dialogue: 0,0:07:35.43,0:07:38.16,Default,,0000,0000,0000,,the Federal Reserve really\Nwanted to stimulate the economy,
Dialogue: 0,0:07:38.16,0:07:41.58,Default,,0000,0000,0000,,and they did that by\Nprinting a ton of money.
Dialogue: 0,0:07:41.58,0:07:45.18,Default,,0000,0000,0000,,So in the scenario that we've\Nbeen in for a while now,
Dialogue: 0,0:07:45.18,0:07:48.09,Default,,0000,0000,0000,,we are deep into an ample reserves regime.
Dialogue: 0,0:07:48.09,0:07:50.07,Default,,0000,0000,0000,,If we were in ample reserves in 2008,
Dialogue: 0,0:07:50.07,0:07:53.97,Default,,0000,0000,0000,,we're that much further\Nright now in the 2020s.
Dialogue: 0,0:07:53.97,0:07:55.38,Default,,0000,0000,0000,,So how does the Federal Reserve
Dialogue: 0,0:07:55.38,0:07:57.72,Default,,0000,0000,0000,,actually control interest rates now?
Dialogue: 0,0:07:57.72,0:08:00.75,Default,,0000,0000,0000,,Well, what they can do is\Nthey can control these floors,
Dialogue: 0,0:08:00.75,0:08:02.94,Default,,0000,0000,0000,,or you could say this\Nfloor right over here.
Dialogue: 0,0:08:02.94,0:08:05.67,Default,,0000,0000,0000,,If they want to increase interest rates,
Dialogue: 0,0:08:05.67,0:08:08.91,Default,,0000,0000,0000,,they just increase the\Ninterest on reserves they give.
Dialogue: 0,0:08:08.91,0:08:10.08,Default,,0000,0000,0000,,And if they do that,
Dialogue: 0,0:08:10.08,0:08:13.20,Default,,0000,0000,0000,,then the curve will look\Nsomething like this,
Dialogue: 0,0:08:13.20,0:08:15.72,Default,,0000,0000,0000,,and then the overnight\Nborrowing rate will be higher,
Dialogue: 0,0:08:15.72,0:08:18.03,Default,,0000,0000,0000,,and then, of course,\Nthat would be restrictive
Dialogue: 0,0:08:18.03,0:08:20.34,Default,,0000,0000,0000,,for the economy, and if they wanna loosen,
Dialogue: 0,0:08:20.34,0:08:24.12,Default,,0000,0000,0000,,they can likewise lower\Nthe interest on reserves.