Teaching the New Tools of Monetary Policy
Resources for teaching the Fed's monetary policy tools in an ample-reserves framework.
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Reading Q&A
31-45 min
The Fed’s Balance Sheet and Ample Reserves
OVERVIEW
This Page One Economics® article explains how the Federal Reserve’s balance sheet strategy supports an ample-reserves framework. This enables short-term rate influence through administered rates and absorbing currency and Treasury fluctuations without frequent market operations. Print the article.
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