The most violent contraction in RGDP occurred during 4Q2008, when the average spread between the 90-day T-bill rate and the IOR rate was the greatest, at -0.83 percentage points.
FORBES: This Economic Recovery Is Surely Different: It's FUBAR*
Last year he tried to make the IOR rescue a renowned but debt-stricken hospital.
Outside the U.S., "very few countries use checks, " says Denise Ryan, director of global destination services at IOR Global Services, a corporate-services firm in Northbrook, Ill.
With the IOR rate far above the 90-day T-bill rate, banks had no incentive to do anything with the huge volume of newly created reserves other than to sit on them, and sit on them they did.
FORBES: We Need QE3 Like We Need A (Jackson) Hole In The Head
So, when the interest rate on 90-day T-bills is below the IOR rate, for practical purposes we have an inverted yield curve.
FORBES: We Need QE3 Like We Need A (Jackson) Hole In The Head
On October 6, 2008, the Federal Reserve started paying interest on bank reserves (IOR) for the first time in its (then) 95-year history.
FORBES: This Economic Recovery Is Surely Different: It's FUBAR*
Pope Benedict has promised greater transparency in Vatican finances and the operations of its bank, the Institute for Works of Religion (IOR), which has in the past been implicated in major money-laundering scandals.
The privately-held Vatican bank, Institute for Works of Religion (IOR), located inside Vatican City, has been at the centre of several financial scandals in recent years, and has been under investigation since 2010 for allegedly omitting data in wire transfers from an Italian account.
Since the Fed started paying IOR, the IOR interest rate has continuously been higher than the market interest rate on 90-day T-bills.
FORBES: This Economic Recovery Is Surely Different: It's FUBAR*
While the IOR rate has been constant at 0.25% since December 2008, the 90-day T-bill has fallen from an average of 0.14% in November 2010 (when QE2 commenced) to zero today.
FORBES: We Need QE3 Like We Need A (Jackson) Hole In The Head
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