TY  - JOUR
AU  - Cecchetti,Stephen G.
TI  - Crisis and Responses: the Federal Reserve and the Financial Crisis of 2007-2008
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 14134
PY  - 2008
Y2  - June 2008
UR  - http://www.nber.org/papers/w14134
L1  - http://www.nber.org/papers/w14134.pdf
N1  - Author contact info:
Stephen G. Cecchetti
Monetary and Economic Department
Bank for International Settlements
Centralbahnplatz 2
4002 Basel
SWITZERLAND
Tel: +41 61 280 8350
Fax: +41 61 280 9113
E-Mail: stephen.cecchetti@bis.org
AB  - Realizing that their traditional instruments were inadequate for responding to the crisis that began on 9 August 2007, Federal Reserve officials improvised. Beginning in mid-December 2007, they implemented a series of changes directed at ensuring that liquidity would be distributed to those institutions that needed it most.  Conceptually, this meant America's central bankers shifted from focusing solely on the size of their balance sheet, which they use to keep the overnight interbank lending rate close to their chosen target, to manipulating the composition of their assets as well.   In this paper, I examine the Federal Reserve's conventional and unconventional responses to the financial crisis of 2007-2008.
ER  -