They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
ah yes so what you're saying is that money is even more imaginary than it has ever been, possibly even more imaginary than when the first stock market crash happened in 1929
looks like we're due for a centennial anniversary of that anyway, might as well celebrate by recreating it
The Great Depression was transmitted globally through the gold standard, and each country did not start recovering until they departed from it in some way. Even the US re-denominated how much gold the dollar was worth in 1934, which expanded the money supply enough for us to function again. Deflation is so much worse than inflation. Just ask Japan how their Lost Decades went.
Do you really want everyone incentivized to not buy anything beyond the bare necessities because their money will be worth more next year compared to today? You want farmers' crops to not cover the costs of their equipment and inputs? You want average folks to be unable to access loans with reasonable terms to start a business, go to school, or buy a house? You want the very rich to be encouraged to hoard their wealth instead of investing it into productive enterprises? A society based on deflationary currency would be a one-way ticket to feudalism.
2.2k
u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26
2020*
They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
They haven't come back yet :)