How Central Banks Lost Their Grip On Money Supply

In this episode, we explore the structural shift in monetary policy where central banks moved from controlling interest rates to managing balance sheets. Lucas and Luna examine why the traditional money multiplier model has collapsed and how modern quantitative easing changed the mechanics of liquidity. We look at specific data points from the Federal Reserve's post-2008 expansion and discuss what this means for future inflation targeting. The conversation anchors on the October 08, 2026 market environment, analyzing how excess reserves have become the new anchor of financial stability rather than a temporary anomaly.

#FexingoBusiness #BusinessPodcast #MonetaryPolicy #CentralBanks #MoneySupply #FederalReserve #QuantitativeEasing #InterestRates #BalanceSheet #Liquidity #InflationTargeting #BankingSystem #EconomicsExplained #FinancialMarkets #ReserveRequirements #Macroeconomics #CashFlow #InvestmentStrategy

Keep every episode free: buymeacoffee.com/fexingo