Easy Lending: How the Federal Reserve's Response to Covid Helped Cause America's High Inflation

On April 1, 2008 in the midst of rising inflation a secret rule went into effect in Saudi Arabia-Banks' Reserve Requirements were raised from 10% to 12% to slow the growth of money supply and curb inflation (Reuters, 2008). Monetary policy memos are typically kept secret in Saudi Arabia, but that didn't stop people from talking about the change coming through. So, what exactly are these bank reserve requirements? In short, it's your money that you think is in the bank, but isn't.