The falling tree makes no sound, but one hand clapping does

At 3spoken, Neil writes

The debate over reserves is over and I think its pretty clear now that banks are not constrained by their reserves in any system with a floating exchange rate where the central bank is trying to maintain an interest rate.

But "trying to maintain an interest rate" IS A POLICY DECISION ABOUT RESERVES. It is the decision not to constrain banks by their reserves.

There was a time, Neil, when interest rates went up. There will be such times, again.