The economic equivalent of a tongue twister, on interest on reserves

From Cardiff Garcia, it starts with something like this:

I first argued that there are risks to lowering IOER that weren’t being considered by some economists who were recommending it. Specifically, such a move could create havoc in money markets that aren’t built to handle negative nominal rates, which would be a possible if not likely consequence. An unlinking of policy from effective rates, a run on money market funds, or chaos in Treasury auctions are some of the possibilities I mentioned – potential consequences of removing what is essentially a safe asset substitute from heavily collateralised short-term lending markets.

Enjoy the rest, including numerous cameo appearances.


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