Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates

Episode 4 of Monetary Policy Explained digs into a subtle but powerful shift: how central banks stopped treating bank reserves as a passive byproduct of lending and turned them into an active policy lever. Lucas and Luna walk through the mechanics of reserve remuneration, the role of the interest on reserve balances (IORB) rate, and what changed after 2008 when the Fed started paying interest on r...

Episode 3 of Monetary Policy Explained with Fexingo tackles a surprisingly controversial question: does the money supply still matter? After decades of de-emphasizing M2 and other aggregates, central banks are paying attention again. Lucas and Luna walk through the revival of monetary analysis, using the post-2022 spike in M2 and the subsequent sharp decline as the case. They explain why the Fed a...

In this episode, Lucas and Luna drill into the mechanics of how the Federal Reserve sets its benchmark interest rate — the federal funds rate — and why it matters for your wallet. They walk through the Fed's two main policy tools: interest on reserve balances (IOER) and the overnight reverse repurchase agreement (ON RRP) facility. Lucas explains why the Fed now targets a range rather than a single...

On May 19, 2026, the European Central Bank cut its deposit rate by 25 basis points to 2.00%, the fourth cut this year. Lucas and Luna break down why the ECB is moving faster than the Fed, what this means for the euro and inflation, and how central bank divergence shapes global markets. They dig into Lagarde's reasoning, the impact on German bond yields, and why this matters for investors holding c...