8:16pm PDT - April 11th, 2021

Cash stimulus check—->put it in the bank—> bank deposits it as reserves with the Fed. Seems a flood of liquidity in the banking system is a second order effect of stimulus we abstract away in macro. Increases bank leverage and tightens supplementary leverage ratio constraint. https://t.co/Vkk1VPmS9U

14 retweets   3 likes  - Will Diamond (@wdiamond_econ)