Excess Reserves of Depository InstitutionsSeries ID:EXCRESNSSource:Board of Governors of the Federal Reserve SystemRelease:H.3 Aggregate Reserves of Depository Institutions and the Monetary BaseSeasonal Adjustment: Not Seasonally AdjustedFrequency:MonthlyUnits:Billions of DollarsDate Range:1929-01-01 to 2008-11-01DATE VALUE1929-01-01 0.0541929-02-01 0.0451929-03-01 0.0411929-04-01 0.0361929-05-01 0.0331929-06-01 0.0391929-07-01 0.0431929-08-01 0.0351929-09-01 0.0351929-10-01 0.0431929-11-01 0.0651929-12-01 0.0481930-01-01 0.0441930-02-01 0.0521930-03-01 0.0561930-04-01 0.0431930-05-01 0.0451930-06-01 0.0541930-07-01 0.0741930-08-01 0.0521930-09-01 0.0591930-10-01 0.0601930-11-01 0.0521930-12-01 0.0731931-01-01 0.1041931-02-01 0.0561931-03-01 0.0671931-04-01 0.0561931-05-01 0.0671931-06-01 0.1291931-07-01 0.1241931-08-01 0.1001931-09-01 0.1211931-10-01 0.1301931-11-01 0.0571931-12-01 0.0591932-01-01 0.0351932-02-01 0.0431932-03-01 0.0591932-04-01 0.1521932-05-01 0.2771932-06-01 0.2351932-07-01 0.2051932-08-01 0.2701932-09-01 0.3451932-10-01 0.4351932-11-01 0.4821932-12-01 0.5261933-01-01 0.5841933-02-01 0.4171933-03-01 1.9141933-04-01 0.4251933-05-01 0.3751933-06-01 0.4141933-07-01 0.4831933-08-01 0.6101933-09-01 0.7121933-10-01 0.7921933-11-01 0.8241933-12-01 0.7941934-01-01 0.8891934-02-01 0.9141934-03-01 1.3911934-04-01 1.5531934-05-01 1.6241934-06-01 1.6851934-07-01 1.7891934-08-01 1.8841934-09-01 1.7551934-10-01 1.7301934-11-01 1.8341934-12-01 1.7471935-01-01 2.0351935-02-01 2.2361935-03-01 2.0641935-04-01 2.0251935-05-01 2.2971935-06-01 2.4381935-07-01 2.3851935-08-01 2.6361935-09-01 2.6281935-10-01 2.8201935-11-01 3.0611935-12-01 2.9831936-01-01 3.0331936-02-01 3.0381936-03-01 2.6531936-04-01 2.5101936-05-01 2.8001936-06-01 2.5931936-07-01 2.9081936-08-01 2.4581936-09-01 1.8521936-10-01 2.0431936-11-01 2.2191936-12-01 2.0461937-01-01 2.0941937-02-01 2.1521937-03-01 1.3711937-04-01 1.5531937-05-01 0.9271937-06-01 0.8761937-07-01 0.8761937-08-01 0.7501937-09-01 0.9001937-10-01 1.0431937-11-01 1.1041937-12-01 1.0711938-01-01 1.3541938-02-01 1.4061938-03-01 1.5241938-04-01 2.0711938-05-01 2.5251938-06-01 2.7621938-07-01 3.0261938-08-01 2.9551938-09-01 2.9201938-10-01 3.1431938-11-01 3.2761938-12-01 3.2251939-01-01 3.4841939-02-01 3.3731939-03-01 3.4331939-04-01 3.9261939-05-01 4.2121939-06-01 4.2451939-07-01 4.4021939-08-01 4.6071939-09-01 5.1971939-10-01 5.4901939-11-01 5.2601939-12-01 5.0111940-01-01 5.4641940-02-01 5.6261940-03-01 5.7341940-04-01 6.0031940-05-01 6.2881940-06-01 6.6961940-07-01 6.7521940-08-01 6.4071940-09-01 6.5811940-10-01 6.8651940-11-01 6.8311940-12-01 6.6461941-01-01 6.8321941-02-01 6.4221941-03-01 6.3041941-04-01 5.8831941-05-01 5.8311941-06-01 5.3511941-07-01 5.1931941-08-01 5.0171941-09-01 5.1161941-10-01 5.0011941-11-01 3.6111941-12-01 3.3901942-01-01 3.4461942-02-01 3.3091942-03-01 3.1471942-04-01 2.9511942-05-01 2.6671942-06-01 2.7041942-07-01 2.2371942-08-01 2.2481942-09-01 2.3001942-10-01 2.3301942-11-01 2.3621942-12-01 2.3761943-01-01 2.1321943-02-01 1.7121943-03-01 1.8841943-04-01 1.9491943-05-01 1.7301943-06-01 1.4611943-07-01 1.3271943-08-01 1.1361943-09-01 1.4171943-10-01 1.2641943-11-01 1.0731943-12-01 1.0481944-01-01 1.1041944-02-01 1.1501944-03-01 0.9781944-04-01 0.8861944-05-01 0.8681944-06-01 1.0811944-07-01 1.2321944-08-01 1.0061944-09-01 0.9831944-10-01 0.9581944-11-01 1.0231944-12-01 1.2841945-01-01 1.1141945-02-01 0.9521945-03-01 1.0101945-04-01 0.9311945-05-01 1.0051945-06-01 1.3391945-07-01 1.2201945-08-01 1.0841945-09-01 1.0631945-10-01 1.0571945-11-01 1.1671945-12-01 1.4911946-01-01 1.3111946-02-01 1.1311946-03-01 1.0311946-04-01 1.0241946-05-01 0.9561946-06-01 0.9431946-07-01 0.9281946-08-01 0.8911946-09-01 0.8851946-10-01 0.8631946-11-01 0.8541946-12-01 0.9001947-01-01 0.8501947-02-01 0.8051947-03-01 0.8711947-04-01 0.8331947-05-01 0.7841947-06-01 0.7851947-07-01 0.7811947-08-01 0.8001947-09-01 0.9311947-10-01 0.9541947-11-01 0.8501947-12-01 0.9861948-01-01 1.0811948-02-01 0.8041948-03-01 0.8221948-04-01 0.8111948-05-01 0.7431948-06-01 0.8521948-07-01 0.8171948-08-01 0.8371948-09-01 0.8841948-10-01 0.8171948-11-01 0.7731948-12-01 0.7971949-01-01 0.8381949-02-01 0.7101949-03-01 0.6941949-04-01 0.7061949-05-01 0.7771949-06-01 0.7581949-07-01 1.0191949-08-01 0.9551949-09-01 0.9221949-10-01 0.8621949-11-01 0.8111949-12-01 0.8031950-01-01 0.9351950-02-01 0.7371950-03-01 0.7831950-04-01 0.6941950-05-01 0.7041950-06-01 0.7681950-07-01 0.7461950-08-01 0.6471950-09-01 0.7651950-10-01 0.8421950-11-01 0.7311950-12-01 1.0271951-01-01 0.8251951-02-01 0.6281951-03-01 0.7131951-04-01 0.8331951-05-01 0.5901951-06-01 0.8341951-07-01 0.7561951-08-01 0.7041951-09-01 0.7211951-10-01 0.9161951-11-01 0.7291951-12-01 0.8261952-01-01 0.9331952-02-01 0.6951952-03-01 0.8851952-04-01 0.6501952-05-01 0.6281952-06-01 0.7091952-07-01 0.6091952-08-01 0.6491952-09-01 0.7781952-10-01 0.6481952-11-01 0.6571952-12-01 0.7231953-01-01 0.7071953-02-01 0.6381953-03-01 0.5881953-04-01 0.5351953-05-01 0.5911953-06-01 0.7881953-07-01 0.7841953-08-01 0.6441953-09-01 0.7181953-10-01 0.7521953-11-01 0.6841953-12-01 0.6931954-01-01 0.9361954-02-01 0.6321954-03-01 0.6921954-04-01 0.7651954-05-01 0.7161954-06-01 0.8571954-07-01 0.8351954-08-01 0.8401954-09-01 0.7751954-10-01 0.7201954-11-01 0.8141954-12-01 0.7031955-01-01 0.6821955-02-01 0.6241955-03-01 0.5851955-04-01 0.5901955-05-01 0.5801955-06-01 0.5691955-07-01 0.6191955-08-01 0.5761955-09-01 0.5631955-10-01 0.5251955-11-01 0.5241955-12-01 0.5941956-01-01 0.5521956-02-01 0.5321956-03-01 0.5841956-04-01 0.5271956-05-01 0.4671956-06-01 0.5741956-07-01 0.5991956-08-01 0.5591956-09-01 0.5781956-10-01 0.5201956-11-01 0.5901956-12-01 0.6521957-01-01 0.5221957-02-01 0.5141957-03-01 0.5181957-04-01 0.5071957-05-01 0.4651957-06-01 0.4971957-07-01 0.5341957-08-01 0.5341957-09-01 0.5221957-10-01 0.4671957-11-01 0.5111957-12-01 0.5771958-01-01 0.5731958-02-01 0.5661958-03-01 0.6331958-04-01 0.6221958-05-01 0.6661958-06-01 0.6261958-07-01 0.6561958-08-01 0.6341958-09-01 0.5711958-10-01 0.5211958-11-01 0.5061958-12-01 0.5161959-01-01 0.4981959-02-01 0.4541959-03-01 0.4601959-04-01 0.4311959-05-01 0.4211959-06-01 0.4071959-07-01 0.4161959-08-01 0.4481959-09-01 0.4431959-10-01 0.4411959-11-01 0.4441959-12-01 0.5061960-01-01 0.5141960-02-01 0.4541960-03-01 0.4231960-04-01 0.4261960-05-01 0.4451960-06-01 0.4801960-07-01 0.5011960-08-01 0.5421960-09-01 0.6271960-10-01 0.6621960-11-01 0.7431960-12-01 0.7431961-01-01 0.7721961-02-01 0.6491961-03-01 0.5461961-04-01 0.6161961-05-01 0.5561961-06-01 0.5901961-07-01 0.6161961-08-01 0.5791961-09-01 0.5801961-10-01 0.5321961-11-01 0.5911961-12-01 0.5841962-01-01 0.6231962-02-01 0.5021962-03-01 0.4721962-04-01 0.4921962-05-01 0.5171962-06-01 0.4731962-07-01 0.5341962-08-01 0.5301962-09-01 0.4901962-10-01 0.4771962-11-01 0.5571962-12-01 0.5721963-01-01 0.5051963-02-01 0.4611963-03-01 0.4341963-04-01 0.4571963-05-01 0.4301963-06-01 0.4171963-07-01 0.4541963-08-01 0.4451963-09-01 0.4281963-10-01 0.3971963-11-01 0.4411963-12-01 0.4901964-01-01 0.4401964-02-01 0.3971964-03-01 0.3861964-04-01 0.3521964-05-01 0.3541964-06-01 0.3751964-07-01 0.3761964-08-01 0.4211964-09-01 0.4311964-10-01 0.3981964-11-01 0.4081964-12-01 0.4061965-01-01 0.4151965-02-01 0.4121965-03-01 0.3661965-04-01 0.3411965-05-01 0.3341965-06-01 0.3621965-07-01 0.3531965-08-01 0.3961965-09-01 0.4101965-10-01 0.3581965-11-01 0.3521965-12-01 0.4231966-01-01 0.3791966-02-01 0.3471966-03-01 0.3421966-04-01 0.3551966-05-01 0.3411966-06-01 0.3561966-07-01 0.3781966-08-01 0.3671966-09-01 0.3711966-10-01 0.3331966-11-01 0.3851966-12-01 0.3391967-01-01 0.4031967-02-01 0.3691967-03-01 0.4141967-04-01 0.3501967-05-01 0.3651967-06-01 0.3521967-07-01 0.4181967-08-01 0.3651967-09-01 0.3421967-10-01 0.3351967-11-01 0.3581967-12-01 0.3751968-01-01 0.3871968-02-01 0.3861968-03-01 0.3371968-04-01 0.3351968-05-01 0.3601968-06-01 0.3281968-07-01 0.3511968-08-01 0.3291968-09-01 0.3611968-10-01 0.2451968-11-01 0.3081968-12-01 0.4261969-01-01 0.2461969-02-01 0.2541969-03-01 0.2191969-04-01 0.1671969-05-01 0.2551969-06-01 0.3041969-07-01 0.2251969-08-01 0.2371969-09-01 0.2741969-10-01 0.1631969-11-01 0.2291969-12-01 0.2861970-01-01 0.1741970-02-01 0.2081970-03-01 0.1631970-04-01 0.1521970-05-01 0.1571970-06-01 0.1901970-07-01 0.1661970-08-01 0.1741970-09-01 0.2441970-10-01 0.2051970-11-01 0.2341970-12-01 0.2491971-01-01 0.2341971-02-01 0.2541971-03-01 0.1951971-04-01 0.1681971-05-01 0.2191971-06-01 0.2011971-07-01 0.1841971-08-01 0.1961971-09-01 0.1891971-10-01 0.1631971-11-01 0.2371971-12-01 0.1821972-01-01 0.2061972-02-01 0.1521972-03-01 0.1901972-04-01 0.1561972-05-01 0.1391972-06-01 0.2031972-07-01 0.1931972-08-01 0.1881972-09-01 0.2121972-10-01 0.2111972-11-01 0.3541972-12-01 0.2841973-01-01 0.2581973-02-01 0.1971973-03-01 0.2091973-04-01 0.2231973-05-01 0.1381973-06-01 0.2171973-07-01 0.2831973-08-01 0.1721973-09-01 0.2311973-10-01 0.2521973-11-01 0.2251973-12-01 0.3041974-01-01 0.1621974-02-01 0.1841974-03-01 0.1341974-04-01 0.1821974-05-01 0.1601974-06-01 0.1981974-07-01 0.1621974-08-01 0.1881974-09-01 0.1811974-10-01 0.1201974-11-01 0.2051974-12-01 0.2581975-01-01 0.1471975-02-01 0.1941975-03-01 0.2001975-04-01 0.1581975-05-01 0.1551975-06-01 0.2011975-07-01 0.1881975-08-01 0.1951975-09-01 0.1911975-10-01 0.2071975-11-01 0.2831975-12-01 0.2661976-01-01 0.2401976-02-01 0.2191976-03-01 0.2231976-04-01 0.1551976-05-01 0.2101976-06-01 0.2141976-07-01 0.2341976-08-01 0.2071976-09-01 0.2011976-10-01 0.2191976-11-01 0.2571976-12-01 0.2741977-01-01 0.2661977-02-01 0.1981977-03-01 0.2151977-04-01 0.1921977-05-01 0.2081977-06-01 0.1471977-07-01 0.2751977-08-01 0.2001977-09-01 0.2091977-10-01 0.2101977-11-01 0.2511977-12-01 0.1901978-01-01 0.2671978-02-01 0.2411978-03-01 0.1991978-04-01 0.1481978-05-01 0.2191978-06-01 0.1781978-07-01 0.1971978-08-01 0.1681978-09-01 0.1931978-10-01 0.1621978-11-01 0.2221978-12-01 0.2321979-01-01 0.2141979-02-01 0.2091979-03-01 0.1581979-04-01 0.1761979-05-01 0.1411979-06-01 0.2211979-07-01 0.2111979-08-01 0.2221979-09-01 0.1911979-10-01 0.2721979-11-01 0.2451979-12-01 0.4421980-01-01 0.2511980-02-01 0.2111980-03-01 0.1861980-04-01 0.1971980-05-01 0.1781980-06-01 0.2031980-07-01 0.2841980-08-01 0.3021980-09-01 0.2561980-10-01 0.2061980-11-01 0.5211980-12-01 0.5141981-01-01 0.3741981-02-01 0.3501981-03-01 0.2801981-04-01 0.1691981-05-01 0.2571981-06-01 0.3381981-07-01 0.3401981-08-01 0.2921981-09-01 0.4141981-10-01 0.2781981-11-01 0.3441981-12-01 0.3191982-01-01 0.4181982-02-01 0.3041982-03-01 0.3611982-04-01 0.2731982-05-01 0.3591982-06-01 0.3081982-07-01 0.3141982-08-01 0.3121982-09-01 0.3841982-10-01 0.4041982-11-01 0.4021982-12-01 0.5001983-01-01 0.5481983-02-01 0.4351983-03-01 0.4331983-04-01 0.4761983-05-01 0.4491983-06-01 0.4801983-07-01 0.5071983-08-01 0.4461983-09-01 0.4981983-10-01 0.5051983-11-01 0.5291983-12-01 0.5611984-01-01 0.6131984-02-01 0.9061984-03-01 0.6681984-04-01 0.4731984-05-01 0.5691984-06-01 0.7591984-07-01 0.6301984-08-01 0.6801984-09-01 0.6491984-10-01 0.6181984-11-01 0.6981984-12-01 0.8351985-01-01 0.7421985-02-01 0.8501985-03-01 0.6751985-04-01 0.7361985-05-01 0.7531985-06-01 0.9221985-07-01 0.8401985-08-01 0.8341985-09-01 0.6971985-10-01 0.7441985-11-01 0.9181985-12-01 1.0631986-01-01 1.0821986-02-01 1.0141986-03-01 0.8831986-04-01 0.7721986-05-01 0.8781986-06-01 0.9191986-07-01 0.8731986-08-01 0.7401986-09-01 0.6901986-10-01 0.7171986-11-01 0.9011986-12-01 1.1731987-01-01 1.0701987-02-01 1.1931987-03-01 0.9211987-04-01 0.8571987-05-01 1.0671987-06-01 1.2341987-07-01 0.8591987-08-01 1.0511987-09-01 0.7841987-10-01 1.0891987-11-01 0.9401987-12-01 1.0191988-01-01 1.2521988-02-01 1.1381988-03-01 0.9451988-04-01 0.8851988-05-01 1.0471988-06-01 0.8951988-07-01 0.8911988-08-01 0.9701988-09-01 1.0171988-10-01 1.0531988-11-01 1.1741988-12-01 1.0611989-01-01 1.1441989-02-01 1.1541989-03-01 0.9181989-04-01 0.8131989-05-01 1.0421989-06-01 0.9081989-07-01 0.9821989-08-01 0.8921989-09-01 0.9451989-10-01 1.0401989-11-01 0.9481989-12-01 0.9411990-01-01 1.0421990-02-01 1.0001990-03-01 0.8811990-04-01 0.8711990-05-01 0.9541990-06-01 0.7871990-07-01 0.8681990-08-01 0.8761990-09-01 0.9131990-10-01 0.8401990-11-01 0.9281990-12-01 1.6651991-01-01 2.1401991-02-01 1.8041991-03-01 1.1821991-04-01 1.0291991-05-01 1.0351991-06-01 0.9961991-07-01 0.9041991-08-01 1.0851991-09-01 0.9331991-10-01 1.0571991-11-01 0.8931991-12-01 0.9901992-01-01 0.9931992-02-01 1.0451992-03-01 1.0251992-04-01 1.1331992-05-01 1.0041992-06-01 0.9241992-07-01 0.9751992-08-01 0.9391992-09-01 1.0151992-10-01 1.0631992-11-01 1.0431992-12-01 1.1541993-01-01 1.2621993-02-01 1.0931993-03-01 1.2331993-04-01 1.1031993-05-01 0.9991993-06-01 0.8951993-07-01 1.0681993-08-01 0.9521993-09-01 1.0861993-10-01 1.0771993-11-01 1.1201993-12-01 1.0691994-01-01 1.4591994-02-01 1.1491994-03-01 0.9841994-04-01 1.1421994-05-01 0.8691994-06-01 1.1171994-07-01 1.1161994-08-01 1.0101994-09-01 1.0481994-10-01 0.7971994-11-01 0.9961994-12-01 1.1711995-01-01 1.3321995-02-01 0.9701995-03-01 0.8231995-04-01 0.7571995-05-01 0.8731995-06-01 0.9831995-07-01 1.1061995-08-01 1.0061995-09-01 0.9711995-10-01 1.0791995-11-01 0.9461995-12-01 1.2901996-01-01 1.4671996-02-01 0.8611996-03-01 1.1421996-04-01 1.1261996-05-01 0.9111996-06-01 1.1141996-07-01 1.0211996-08-01 0.9611996-09-01 1.0501996-10-01 1.0071996-11-01 1.0551996-12-01 1.4181997-01-01 1.2281997-02-01 1.0351997-03-01 1.1691997-04-01 1.0151997-05-01 1.2831997-06-01 1.3441997-07-01 1.2371997-08-01 1.2601997-09-01 1.2971997-10-01 1.4161997-11-01 1.6681997-12-01 1.6871998-01-01 1.7641998-02-01 1.5351998-03-01 1.3501998-04-01 1.3911998-05-01 1.2901998-06-01 1.6191998-07-01 1.3741998-08-01 1.5321998-09-01 1.6971998-10-01 1.5751998-11-01 1.6111998-12-01 1.5121999-01-01 1.4891999-02-01 1.1941999-03-01 1.2681999-04-01 1.1551999-05-01 1.2211999-06-01 1.2971999-07-01 0.9641999-08-01 1.1611999-09-01 1.2131999-10-01 1.1481999-11-01 1.3281999-12-01 1.2942000-01-01 2.0132000-02-01 1.1122000-03-01 1.2082000-04-01 1.1662000-05-01 0.9692000-06-01 1.1122000-07-01 1.1432000-08-01 1.0532000-09-01 1.1452000-10-01 1.1482000-11-01 1.2032000-12-01 1.3252001-01-01 1.2632001-02-01 1.3452001-03-01 1.2502001-04-01 1.2572001-05-01 1.0192001-06-01 1.2492001-07-01 1.4012001-08-01 1.2032001-09-01 19.0152001-10-01 1.3262001-11-01 1.4392001-12-01 1.6432002-01-01 1.4052002-02-01 1.3722002-03-01 1.4022002-04-01 1.2052002-05-01 1.2592002-06-01 1.2362002-07-01 1.3762002-08-01 1.6072002-09-01 1.4842002-10-01 1.5332002-11-01 1.6362002-12-01 2.0082003-01-01 1.7082003-02-01 1.9652003-03-01 1.6292003-04-01 1.5392003-05-01 1.6172003-06-01 2.0402003-07-01 1.9342003-08-01 3.7642003-09-01 1.5092003-10-01 1.4672003-11-01 1.4832003-12-01 1.0472004-01-01 0.8882004-02-01 1.1912004-03-01 1.8082004-04-01 1.8052004-05-01 1.6842004-06-01 1.9322004-07-01 1.7222004-08-01 1.5822004-09-01 1.6542004-10-01 1.7562004-11-01 1.7852004-12-01 1.9092005-01-01 1.7392005-02-01 1.4902005-03-01 1.7822005-04-01 1.6652005-05-01 1.5262005-06-01 1.7392005-07-01 1.7922005-08-01 1.6202005-09-01 1.9952005-10-01 1.8842005-11-01 1.7812005-12-01 1.9002006-01-01 1.5762006-02-01 1.5502006-03-01 1.5072006-04-01 1.8252006-05-01 1.7992006-06-01 1.7832006-07-01 1.5542006-08-01 1.5202006-09-01 1.7622006-10-01 1.6952006-11-01 1.6892006-12-01 1.8632007-01-01 1.5452007-02-01 1.4532007-03-01 1.6172007-04-01 1.5872007-05-01 1.4532007-06-01 1.7512007-07-01 1.6382007-08-01 4.8262007-09-01 1.7332007-10-01 1.4592007-11-01 1.6962007-12-01 1.7702008-01-01 1.6402008-02-01 1.7242008-03-01 2.9782008-04-01 1.8442008-05-01 2.0112008-06-01 2.2722008-07-01 1.9772008-08-01 1.9882008-09-01 60.0512008-10-01 267.9052008-11-01 559.051
Am I right in saying that the banks stocked up on money before 9/11? That's how it seems looking at the data, maybe I'm reading it wrong, but it's really the entries for the last three months I wished to ask about. Obviously the numbers are significant, but do they spell the overt and absolute collapse of the dollar before Valentines Day as I'm expecting? I can't see how the dollar can make Spring.
If the retail industry feeds consumption and is dependant on a profitable Christmas and the dollar on consumption, does not the dollar depend on a profitable Christmas?
On the 9/11 figure, it may represent an average for the whole month of September. I've always though the Fed pumped a ton of reserves in after 9/11, then sucked them out again.
The last figures concern me, as well as the huge rise in the monetary base (its nearly doubled in the past year). However, this doesn't mean inflation is around the corner because the multiplier is so low (its basically 1), meaning the overall money supply hasn't increased very much, if at all. If inter-bank leverage starts to increase and the multiplier gets larger, the money supply will increase and inflation will result. If the multiplier reaches the same level it was a few years ago and all those reserves are still in the system, the value of the dollar will be cut in half.
From what I've read of free banking theory, the Fed is doing more or less what they should be if they were trying to emulate a free banking system (which isn't completely possible, of course, but they can try): they are responding to an increasing demand for money by supplying more money. When leverage starts to increase again, a free banking system supposedly pulls out reserves (as the demand to hold them drops) and more or less keeps the quantity of money constant.
Unfortunately, the Fed is also tasked to maintain "full employment", which basically means they are supposed to smooth out business cycles. Since we all know there is no way to avoid a bad recession (for reasons of capital heterogeneity if nothing else), they may exceed the demand for reserves, and not suck enough of them out again when leverage starts to increase (all in the name of an economic stimulus to increase employment).
In other words, I think the dollar could see some serious inflation, but it probably won't be until the financial sector re-leverages itself, which might take a while (especially given how uncertain things are in the politics of finance). It won't hit all at once, and even 100% spread over a few years probably won't collapse the dollar. Remember, most nations are actually worse off than us in this crisis.
Things will be worse if the Fed starts to monetize debt in order to pay for congress's and the treasury's recent spending spree.
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