Journal Article

The Fed and Its Shadow: A Historical View

Abstract: Central bank policies have always incorporated both a discretionary or active component and a passive component. Successful central banking has required a coordination of the two components. After a period of apparent dormancy, the passive component of monetary policy has emerged from the shadows and become relevant for Federal Reserve policy today.

Keywords: central bank; monetary policy; active; passive; repo; reverse repo;

JEL Classification: E58; G23; N20;

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Bibliographic Information

Provider: Federal Reserve Bank of Atlanta

Part of Series: Policy Hub

Publication Date: 2023-10-02

Volume: 2023

Issue: 6

Pages: 32