Fed’s unconventional policies similar to measures in 1920s, says research
Market operations early in the 20th century more than tripled Fed’s Treasury portfolio
The unconventional policies the Federal Reserve implemented to respond to the financial crisis of 2007–09 are similar to the tools used by the central bank in the 1920s, research published by the Fed says.
“Unconventional” Monetary Policy as Conventional Monetary Policy: A Perspective from the US in the 1920s by Mark Carlson and Burcu Duygan-Bump focuses on the three main instruments the Fed resorted to in the 1920s: the discount window; purchases of bankers’ acceptances; and purchases of
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