More specifically, I would like to examine the rationale behind the hypothesis that inflation cannot be attained no matter how much the Bank increases the monetary base because its liquidity injection will only increase the excess reserves of financial institutions and not increase the amount of money in the real sector.
Rationale for consolidated supervision Worldwide, the process of change has allowed many financial organizations, which used to engage in the primary business of banking, asset management or insurance activities on a standalone basis, to adopt more flexible structures whereby banks opened up a wide range of subsidiaries and affiliates that primarily engage in businesses other than their core business.