The Fed Funds rate is near zero. By this common gauge, the Fed doesn't have any more room to ease. Does that mean monetary policy is totally effective? I think not. Learn why in this video.
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Technically yes. But the fed can use other tools such as intervening on the market by buying bonds, reducing the cash reserve ratio, "quantitative easing" a polite way of naming printing money.
Given the wide power given to the fed, they can create new instruments that we may not have thought of yet.
Posted by: john tan | January 27, 2009 at 08:34 AM
Technically yes. But the fed can use other tools such as intervening on the market by buying bonds, reducing the cash reserve ratio, "quantitative easing" a polite way of naming printing money.
Given the wide power given to the fed, they can create new instruments that we may not have thought of yet.
Posted by: john tan | January 27, 2009 at 08:35 AM
Technically yes. But the fed can use other tools such as intervening on the market by buying bonds, reducing the cash reserve ratio, "quantitative easing" a polite way of naming printing money.
Given the wide power given to the fed, they can create new instruments that we may not have thought of yet.
Posted by: john tan | January 27, 2009 at 08:44 AM
Sorry my browser froze and it resulted in three posts.
Posted by: john tan | January 27, 2009 at 08:46 AM
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