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This page contains all of the posts and discussion on MemeStreams referencing the following web page: The Scope of Monetary Policy Actions Authorized under the Federal Reserve Act. You can find discussions on MemeStreams as you surf the web, even if you aren't a MemeStreams member, using the Threads Bookmarklet.

The Scope of Monetary Policy Actions Authorized under the Federal Reserve Act
by possibly noteworthy at 7:43 pm EST, Dec 26, 2007

The Federal Reserve Act authorizes the Federal Reserve to undertake various types of discount window loans and open market operations. While the Federal Reserve generally has not found it necessary to use all types of such authority, there could be circumstances in which the Federal Reserve might need to consider utilizing its statutory authority more broadly than it has in the past. We examine the limits imposed by the Federal Reserve Act along two dimensions: those types of counterparties and financial instruments with which the Federal Reserve may conduct monetary policy. In doing so, we develop a theme not commonly pursued in the literature - the ways and extent to which the Federal Reserve Act limits the Federal Reserve from taking credit risk onto its balance sheet. We also provide some historical perspective on how the current powers of the Federal Reserve came to be authorized.

This paper is mentioned in a recent story in the Telegraph.


 
 
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