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Large-scale asset purchases by the Federal Reserve: did they work?

  • Joseph E. Gagnon
  • Matthew Raskin
  • Julie Remache
  • Brian P. Sack

In this study, authors Joseph Gagnon, Matthew Raskin, Julie Remache and Brian Sack review the Federal Reserve’s experience with implementing the LSAPs between late 2008 and March 2010. They explain that the target fed funds rate was set as low as possible in December 2008. Thus, to further ease the stance of monetary policy as the economic outlook deteriorated, the central bank purchased substantial quantities of assets with medium and long maturities—housing agency debt, agency mortgage-backed securities (MBS) and Treasuries—to drive down private borrowing rates. ; Title of Special Issue: Federal Reserve Policy Responses to the Financial Crisis.

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Article provided by Federal Reserve Bank of New York in its journal Economic Policy Review.

Volume (Year): (2011)
Issue (Month): May ()
Pages: 41-59

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Handle: RePEc:fip:fednep:y:2011:i:may:p:41-59:n:v.17no.1
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  10. Christopher J. Neely, 2010. "The large scale asset purchases had large international effects," Working Papers 2010-018, Federal Reserve Bank of St. Louis.
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  12. Ben S. Bernanke & Vincent Reinhart & Brian P. Sack, 2004. "Monetary policy alternatives at the zero bound: an empirical assessment," Finance and Economics Discussion Series 2004-48, Board of Governors of the Federal Reserve System (U.S.).
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