Question
From 1979 to 1982, the FOMC used money growth as an intermediate target of MP. To do so, the committee instructed the Open Market Trading
From 1979 to 1982, the FOMC used money growth as an intermediate target of MP. To do so, the committee instructed the Open Market Trading desk at the NY Fed to target the level of non-borrowed reserves in the banking system.
a. What was the justification for doing so?
b. Explain what happened to interest rates.
c. Why did this happen?
d. What did the Fed ultimately do?
e. Why?
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Private Debt Yield Safety And The Emergence Of Alternative Lending
Authors: Stephen L. Nesbitt
2nd Edition
1119944392, 978-1119944393
