> Reserves are money -- they are the key component of the monetary base, included in all money aggregates.
Money exists on a spectrum. Reserves are money-like in some aspects, but so are bonds and equities, as is gold. These are all stores of value and media of exchange.
QE is creating new reserves (which is money-like) and buying other types of assets (which are money-like): basically an asset swap. The balance sheet often stays exactly the same.
Money exists on a spectrum. Reserves are money-like in some aspects, but so are bonds and equities, as is gold. These are all stores of value and media of exchange.
QE is creating new reserves (which is money-like) and buying other types of assets (which are money-like): basically an asset swap. The balance sheet often stays exactly the same.