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Author:Crawley, Edmund 

Discussion Paper
Substitutability between Balance Sheet Reductions and Policy Rate Hikes: Some Illustrations and a Discussion
Crawley, Edmund; Gagnon, Etienne; Hebden, James; Trevino, James (2022-06-03)
This note explores the substitutability between policy rate hikes and reductions in the size of the Federal Reserve's balance sheet for the removal of policy accommodation. We do so using a version of the FRB/US model augmented to incorporate the effects of changes in the Federal Reserve's asset holdings on term premiums.
FEDS Notes , Paper 2022-06-03-2

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