00:01
So this is a pretty straightforward, right? when you think of a reserve requirements, b or sorry, c, open market operations or omos, and d, discount window, or they say discount policy, it really should be the discount window is what it's called.
00:27
These are all meant a different color there.
00:30
These are all, right? or in some cases like reserve requirements obsolete, right? these are very, reserve requirements are very old ways of regulating banks.
00:41
These have largely been replaced with more modern capital requirements, right? but all these are old, right? reserve requirements are simply saying to the bank, you must hold so much cash.
00:52
The discount window is simply the bank saying, we can make loans in case of emergency, right? these are not new policy innovations.
00:59
What is new was b, interest on reserves.
01:03
This was brand new in the great recession, right? and the reason why is a little bit detailed...