QE dynamics one more time- it’s about price, not quantity

Believe it or not I’m still getting a lot of questions about how QE works, so I’ve reorganized the discussion some: First, recognize that, in fact, reserves, functionally, are nothing more than 1 day t bills. And, for all practical purposes, the difference between issuing 1 day t bills and 3 month t bills is inconsequential. [...]