Title of article
Central bankinginthecreditturmoil:AnassessmentofFederal Reserve practice
Author/Authors
Marvin Goodfriend، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
12
From page
1
To page
12
Abstract
Centralbankingisunderstoodintermsofthefiscalfeaturesofmonetary,credit,and
interest onreservespolicies.Monetarypolicy–expandingreservesbybuying
Treasuries–transfersallrevenuefrommoneycreationdirectlytothefiscalauthorities.
Credit policy–sellingTreasuriestofundloansoracquirenon-Treasurysecurities–is
debt-financedfiscalpolicy.Interestonreservesfreesmonetarypolicytofundcredit
policy independentlyofinterestratepolicy.Anambiguousboundaryofresponsibilities
betweentheFedandthefiscalauthoritiescontributedtoeconomiccollapseinfall2008.
‘‘Accord’’principlesareproposedtoclarifyFedcreditpolicypowersandsecureits
independenceonmonetaryandinterestratepolicy.TheFedneedsmoresurpluscapital
from thefiscalauthoritiestobefullyflexibleagainstbothinflationanddeflationatthe
zero interestbound
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846449
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