Posts from August 2011

What options does the Fed have?

What options does the Fed have for applying more monetary stimulus? Restructure the balance sheet (“Operation Twist”): Replace short-term securities with longer-term ones, to depress long-term interest rates which, in turn (it is hoped), would spur demand for housing. It can do so passively, by using funds from the $20bn it receives each month in […]

Posted: August 22nd, 2011
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