George Selgin says the Fed’s shift to a floor system crippled the fed funds market, leaving U.S. banks with about $3 trillion in reserves vs about $50 billion b

George Selgin says the Fed’s shift to a floor system crippled the fed funds market, leaving U.S. banks with about $3 trillion in reserves vs about $50 billion before. He says it also weakened peer monitoring that once helped curb panic-driven runs.