Floored!: How a Misguided Fed Experiment Deepened and Prolonged the Great Recession

Floored!: How a Misguided Fed Experiment Deepened and Prolonged the Great Recession
ISBN-10
1948647087
ISBN-13
9781948647083
Category
Federal Reserve banks
Pages
230
Language
English
Published
2018-10-22
Author
George Selgin

Description

In October 2008, as the U.S. economy plunged, the Federal Reserve began paying interest on banks' reserve balances. The resulting switch to a "floor system" of monetary control, in which changes in the interest rate on reserves, rather than reserve creation or destruction, became the Fed's chief tool for influencing economic activity, was to have far-reaching consequences--almost all of them regrettable. Besides intensifying the downturn by causing banks to hoard reserves, the floor system all but destroyed the market for unsecured interbank loans that had been banks' ordinary "first resort" source of last-minute liquidity. By depriving the Fed's asset purchases of the ability to stimulate investment and spending, it also compelled the Fed to compensate by purchasing assets on an unprecedented scale. All of this resulted in a substantial increase in the Fed's role in allocating scarce credit. Finally, by severing the ordinary connection between the stance of monetary policy and the extent of the Fed's asset holdings, the floor system risks turning the Fed's balance sheet into a fiscal-policy playground. Floored! offers a matchless account of our post-crisis monetary system's history and shortcomings.

Get the book

Amazon.com
Amazon.com
Search the book
eBay.com
eBay.com
Search the book

Other editions

Similar books

  • Floored
    Floored
    By Lisa Williamson, Holly Bourne, Sara Barnard

    The Breakfast Club meets One Day in Floored, a unique collaborative novel by seven bestselling and award-winning YA authors: Sara Barnard, Holly Bourne, Tanya Byrne, Non Pratt, Melinda Salisbury, Lisa Williamson and Eleanor Wood.

  • Floored
    Floored
    By Karla Sorensen

    Lia Ward has a steamy one-night stand with a British football player and finds herself pregnant with his baby.

  • Floored
    Floored
    By Ainslie Paton

    ... . It could be more, but he's a fake and she's a liar. They're both neck deep in crime, and only one of them is on the right side of the law. About the Author Ainslie Paton is a corporate storyteller working Floored ...

  • Floored
    Floored
    By Melanie Harlow

    While Erin's house was being robbed, she was in the shower indulging her favorite Brad Pitt fantasy.

  • Floored
    Floored
    By Karla Sorensen

    You know how the story goes though ... a few weeks later, the impulsive girl gets a little pukey, and sees a sports headline featuring her mystery Brit kicking the black and white ball that got us into this mess.

  • The Earth Is Flat & Other Stories: Conspiracy Theories Floored by Science
    The Earth Is Flat & Other Stories: Conspiracy Theories Floored by Science
    By Smart Design Studio

    Did you know that some people still think the Earth is flat?

  • Frenched
    Frenched
    By Melanie Harlow

    Is it just the seduction of Paris or could this be the real thing?

  • God's Demon
    God's Demon
    By Wayne Barlowe

    God's Demon is a "fascinating"* dark fantasy novel of a fallen warrior seeking atonement from award-winning author and renowned artist Wayne Barlowe.

  • Hide and Seeker
    Hide and Seeker
    By Daka Hermon

    One of our most iconic childhood games receives a creepy twist as it becomes the gateway to a nightmare world.

  • Floored: A Short Story
    By Tabatha Tower

    A Short StoryBreaking off previous engagements; two people embark on a new friendship after finding themselves trapped together in an elevator.A Jocose Bright!