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A History of Large-Scale Asset Purchases before the Federal Reserve

Author

Listed:
  • Benjamin Chabot
  • Gabe Herman

Abstract

The authors find that between 1870 and 1913, large open market purchases of Treasury securities made by the U.S. Treasury Department narrowed the yield spread between Treasury bonds with high interest rate risk (the risk of an investment?s value changing on account of interest rate changes) and those with low interest rate risk.

Suggested Citation

  • Benjamin Chabot & Gabe Herman, 2013. "A History of Large-Scale Asset Purchases before the Federal Reserve," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q IV, pages 140-152.
    • Handle: RePEc:fip:fedhep:00002
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    References listed on IDEAS

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    Cited by:

    1. Thomas B. King, 2013. "A Portfolio-Balance Approach to the Nominal Term Structure," Working Paper Series WP-2013-18, Federal Reserve Bank of Chicago.

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