The Failed Federal Reserve Attempt to Get Back to the Past
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Date
2020-05-21
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Private Enterprise Research Center, Texas A&M University
Abstract
The end result of the Federal Reserve’s response to the 2008 financial and the Great Recession was an unprecedented increase in assets. Between 2008 and 2014, Federal Reserve assets rose from just under $900 billion to over $4.5 trillion, more than 500%. This asset increase was expected to dramatically increase inflation, but did not due to the introduction of paying interest on bank reserves. In policy study 2002, author Thomas R. Saving shows the Federal Reserve’s rise in assets and the outcomes of its decision to return to their historic level as a share of GDP.
Description
Finance_
Keywords
Federal Reserve, IOER, asset, divest, Great Recession, Finance_