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Federal Reserve Response to the 2007 Financial Crisis. Monetary Policy Instruments

Author

Listed:
  • Bonta (Mitea) Liana-Antonela

    (“Babes-Bolyai†University of Cluj-Napoca)

Abstract

This paper will present a radiography of the actions taken by the Federal Reserve after thedebut of the subprime crisis. FED's reaction is very important as it served as a model for the othercentral banks, especially for the European Central Bank. The below analysis will show that FED’straditional actions as lender of last resort were not enough and FED had to come up with somenew and unconventional monetary solutions and track their impact on the US economy.

Suggested Citation

  • Bonta (Mitea) Liana-Antonela, 2018. "Federal Reserve Response to the 2007 Financial Crisis. Monetary Policy Instruments," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 2-6, July.
    • Handle: RePEc:ovi:oviste:v:xviii:y:2018:i:1:p:2-6
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    References listed on IDEAS

    as
    1. Alan S. Blinder, 2012. "Central Bank Independence and Credibility During and After a Crisis," Working Papers 1401, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. Paul De Grauwe, 2013. "The European Central Bank as Lender of Last Resort in the Government Bond Markets," CESifo Economic Studies, CESifo Group, vol. 59(3), pages 520-535, September.
    3. Alan S. Blinder, 2012. "Central Bank Independence and Credibility During and After a Crisis," Working Papers 1401, Princeton University, Department of Economics, Center for Economic Policy Studies..
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    FED; crisis; lender of last resort; monetary policy instruments;
    All these keywords.

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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