tailieunhanh - Ebook The economics of money, banking, and financial markets (10th edition): Part 2
(BQ) Part 2 book "The economics of money, banking, and financial markets" has contents: Central banking and the conduct of monetary policy, international finance and monetary policy, monetary theory. | C h a p t e r 1 3 Central Banks and the Federal Reserve System Part 4 Central Banking and the Conduct of Monetary Policy Crisis and Response: The Federal Reserve and the Global Financial Crisis When the Federal Reserve was confronted with what former Chairman Alan Greenspan described as a “once-in-a-century credit tsunami,” it resolved to come to the rescue. Starting in September 2007, the Federal Reserve lowered the federal funds rate target, bringing it down to zero by the end of 2008. At the same time, the Fed implemented large liquidity injections into the credit markets to try to get them lending again. In mid-August 2007, the Fed lowered the discount rate at which it lent to banks to just 50 basis points above the federal funds rate target from the normal 100 basis points. Over the course of the crisis, the Fed broadened its provision of liquidity to the financial system well outside its traditional lending to depository institutions. Indeed, after the Fed made loans to assist in the takeover of Bear Stearns by . Morgan in March 2008, Paul Volcker, a former Chairman of the Federal Reserve, described the Fed’s actions as going to the “very edge of its lawful and implied powers.” The number of new Fed lending programs over the course of the crisis spawned a whole new set of acronyms—the TAF TSLF PDCF AMLF CPFF and , , , , , MMIFF—making the Fed sound like the Pentagon with code-named initiatives and weapons. Like the Pentagon, the Fed was fighting a war, although its weapons were financial rather than guns, tanks, or aircraft. The recent global financial crisis has demonstrated the importance of central banks like the Federal Reserve to the health of the financial system and the economy. Chapter 13 outlines what central banks are trying to achieve, what motivates them, and how they are set up. Chapter 14 describes how the money supply is determined. In Chapter 15, we look at the tools that central banks like the Fed have at their disposal and how .
đang nạp các trang xem trước
