The increased level of excess reserves that many banks held in 2008 made traditional monetary policy less effective.

Name: The increased level of excess reserves that many banks held in 2008 made traditional monetary policy less effective.
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When banks hold excess reserves, they are not lending out as much money, which limits the effectiveness of traditional monetary policy measures that rely on changes in interest rates to influence borrowing and spending.

The Increased Level of Excess Reserves That Many Banks Held