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The Federal Reserve responds to crises: September 11th was not the first Author info | Abstract | Publisher info | Download info | Related research | Statistics Christopher J. Neely
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A primary purpose of the Federal Reserve Act of 1913 was to prevent banking panics by establishing the Federal Reserve System to function as a lender of last resort. Other types of financial crisis require a similar response, however, and the Federal Reserve has repeatedly used its capacity to generate liquidity to insulate the economy from crises in financial markets. The Fed’s response to the terrorist attacks of September 11, 2001, is the most recent example of this. This paper reviews the Fed’s responses to crises and potential crises in financial markets: the stock market crash of 1987, the Russian default, and the September 11th attacks.
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Article provided by Federal Reserve Bank of St. Louis in its journal Review .
Volume (Year): (2004)
Issue (Month): Mar ()
Pages: 27-42
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Handle: RePEc:fip:fedlrv:y:2004:i:mar:p:27-42:n:v.86no.2Contact details of provider: Postal: P.O. Box 442, St. Louis, MO 63166 Fax: (314)444-8753 Web page: http://www.stlouisfed.org/ More information through EDIRC
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Keywords: Money supply ; Monetary policy ; Other versions of this item:
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