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The Resource More Money: Understanding Recent Changes in the Monetary Base

More Money: Understanding Recent Changes in the Monetary Base

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More Money: Understanding Recent Changes in the Monetary Base
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More Money: Understanding Recent Changes in the Monetary Base
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Summary
The financial crisis that began in the summer of 2007 took a turn for the worse in September 2008. Until then, Federal Reserve actions taken to improve the functioning financial markets did not affect the monetary base. The unusual lending and purchase of private debt was offset by the sale of United States Treasury securities so that the total size of the balance sheet of the Federal Reserve remained relatively unchanged. In September, however, the Federal Reserve stopped selling securities as it made massive purchases of private debt and issued hundreds of billions of dollars in short-term loans. The result was a doubling of the size of the monetary base in the final four months of 2008. This article discusses the details of the programs that the Federal Reserve has initiated since the crisis began, shows which programs have grown as the monetary base grew, and discusses some factors that will determine whether this rapid increase in the monetary base will lead to rapid inflation
http://library.link/vocab/creatorName
  • Gavin, William T
  • Inter-university Consortium for Political and Social Research [distributor]
Label
More Money: Understanding Recent Changes in the Monetary Base
Instantiates
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25061
Control code
ICPSR25061.v1
Governing access note
Access restricted to subscribing institutions
Label
More Money: Understanding Recent Changes in the Monetary Base
Publication
Note
25061
Control code
ICPSR25061.v1
Governing access note
Access restricted to subscribing institutions

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