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Isn't that the formal mechanism the Fed uses with US banks? They can make a loan in excess of their reserves, but they have to be able to get the reserves shortly to meet the reserve requirement and that has some small cost.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Aug 28th, 2013 at 11:49:44 AM EST
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