During the fi nancial crisis of 20072009, the Federal Reserve used its emergency authority to lend to

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During the fi nancial crisis of 2007–2009, the Federal Reserve used its emergency authority to lend to shadow banks. Explain how this extension of the lender of last resort function added to moral hazard.

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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