The Fed continued to pursue unusual policy measures for several years after the end of the financial
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The Fed continued to pursue unusual policy measures for several years after the end of the financial crisis of 2007–2009. Chairman Bernanke and other members of the FOMC continued to discuss an “exit strategy”
to shrink its balance sheet and return bank reserves and the monetary base to more normal levels. How could the Federal Reserve use the interest rate it pays on bank reserves to restrain banks from lending large amounts of excess reserves and increasing the money supply excessively? In addition, how could the term deposit facility, the Fed’s other new policy tool, restrain banks from lending large amounts of excess reserves all at once?
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Related Book For
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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