Sublime

The reverse repo facility has been flat lately, and there’s still $433 billion in it. The big draining of the reverse repo facility from over $2 trillion in May 2023 to the current low levels was the main reason why the Fed was able to keep performing quantitative tightening without causing further liquidity problems in the banking system.

And so, “maintain purchasing power” as a property of money can only sensibly mean: If, at t0, it can purchase a given proportion of the whole output of the economic network, then, at t1, it can purchase that same proportion.