Implementing Monetary Policy in an "Ample-Reserves" Regime: When in Crisis (Note 3 of 3)
Abstract: Note 1 and Note 2 in this three-part series described how the Federal Reserve (or Fed) implements monetary policy in normal times, with an ample quantity of reserves in the banking system. In this third and final Note in our series, we take a detour in light of current circumstances and describe how the Fed operates amid a crisis—when facing severely strained economic or financial circumstances, or both.
Part of Series: FEDS Notes
Publication Date: 2020-10-02