Thousands of the data series on FRED are provided directly by the Board of Governors of the Federal Reserve System, including hundreds of indicators from the Fed’s weekly balance sheet report (H.4.1 Factors Affecting Reserve Balances).How does this balance sheet transparency affect the conduct of monetary policy?
Answer to relevant QuestionsFigure 17.11 shows a sharp decline of the M1 money multiplier in 2008. What caused the drop? Using the indicators for currency (FRED code: CURRENCY), total reserve balances maintained (FRED code: RESBALNS), reserve balances ...Federal Reserve buying of mortgage-backed securities is an example of atargeted asset purchase. Explain how the Fed’s actions are intended to work.Use your knowledge of the problems associated with asymmetric information to explain why, prior to the change in the Federal Reserve’s discount lending facility in 2002, banks were extremely unlikely to borrow from the ...How might the Federal Reserve exit from the unconventional policies it employed during the financial crisis of 2007-2009 without causing inflationary problems? Explain why a central bank is usually more effective at holding the value of its domestic currency at an artificially low level for a sustained period than at an artificially high level.
Post your question