Should the Fed Do Emergency Lending?
In its 100-year history, many of the Federal Reserve's actions in the name of financial stability have come through emergency lending once financial crises are underway. It is not obvious that the Fed should be involved in emergency lending, however, since expectations of such lending can increase the likelihood of crises. Arguments in favor of this role often misread history. Instead, history and experience suggest that the Fed's balance sheet activities should be restricted to the conduct of monetary policy.
Year of publication: |
2014
|
---|---|
Authors: | Haltom, Renee Courtois ; Lacker, Jeffrey M. |
Published in: |
Richmond Fed Economic Brief. - Federal Reserve Bank of Richmond. - 2014, July, p. 1-6
|
Publisher: |
Federal Reserve Bank of Richmond |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Should the Fed Have a Financial Stability Mandate? Lessons from the Fed's first 100 Years
Lacker, Jeffrey M., (2013)
-
Reforming Money Market Mutual Funds: A Difficult Assignment
Ennis, Huberto M., (2014)
-
The First Time the Fed Bought GSE Debt
Haltom, Renee Courtois, (2014)
- More ...