An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession
The economics literature lacks articles that provide a broad roadmap—let alone a logical explanation—of the new set of Federal Reserve policy tools that were created to counter the COVID-19 recession. This study provides an overview of the motivation for these new credit-easing programs—namely to da...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2021-01-01
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| Series: | Journal of Government and Economics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2667319321000136 |
| _version_ | 1818996943315009536 |
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| author | Michael D. Bordo John V. Duca |
| author_facet | Michael D. Bordo John V. Duca |
| author_sort | Michael D. Bordo |
| collection | DOAJ |
| description | The economics literature lacks articles that provide a broad roadmap—let alone a logical explanation—of the new set of Federal Reserve policy tools that were created to counter the COVID-19 recession. This study provides an overview of the motivation for these new credit-easing programs—namely to damp feedback mechanisms and channels that would otherwise amplify the downturn and impede a subsequent recovery. The study then briefly assesses the impact of the new policy tools and addresses the risks they might pose. In addition, the new credit easing tools are put into historical context through a discussion of their development as part of the Fed's evolving and expanding role in countering financial crises. |
| first_indexed | 2024-12-20T21:37:46Z |
| format | Article |
| id | doaj.art-20c3780d92f94d8d992fda1654af08ef |
| institution | Directory Open Access Journal |
| issn | 2667-3193 |
| language | English |
| last_indexed | 2024-12-20T21:37:46Z |
| publishDate | 2021-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Government and Economics |
| spelling | doaj.art-20c3780d92f94d8d992fda1654af08ef2022-12-21T19:25:54ZengElsevierJournal of Government and Economics2667-31932021-01-013100013An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recessionMichael D. Bordo0John V. Duca1Rutgers University, National Bureau of Economic Research, Hoover Institution, Stanford UniversityOberlin College, Dept. of Economics, 223 Rice Hall, Oberlin, OH 44074, United States; Research Department, Federal Reserve Bank of Dallas, P.O. Box 655906, Dallas, TX 75265, United States; Corresponding author: Oberlin College, Dept. of Economics, 223 Rice Hall, Oberlin, OH 44074, United States.The economics literature lacks articles that provide a broad roadmap—let alone a logical explanation—of the new set of Federal Reserve policy tools that were created to counter the COVID-19 recession. This study provides an overview of the motivation for these new credit-easing programs—namely to damp feedback mechanisms and channels that would otherwise amplify the downturn and impede a subsequent recovery. The study then briefly assesses the impact of the new policy tools and addresses the risks they might pose. In addition, the new credit easing tools are put into historical context through a discussion of their development as part of the Fed's evolving and expanding role in countering financial crises.http://www.sciencedirect.com/science/article/pii/S2667319321000136E58E52G12G18 |
| spellingShingle | Michael D. Bordo John V. Duca An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession Journal of Government and Economics E58 E52 G12 G18 |
| title | An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession |
| title_full | An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession |
| title_fullStr | An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession |
| title_full_unstemmed | An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession |
| title_short | An overview of the Fed's new credit policy tools and their cushioning effect on the COVID-19 recession |
| title_sort | overview of the fed s new credit policy tools and their cushioning effect on the covid 19 recession |
| topic | E58 E52 G12 G18 |
| url | http://www.sciencedirect.com/science/article/pii/S2667319321000136 |
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