Title

Quantitative Easing: Entrance and Exit Strategies

Author(s)

Alan S. Blinder Alan Blinder (Princeton University)

Abstract

Apparently, it can happen here. On December 16, 2008, the Federal Open Market Committee (FOMC), in an effort to fight what was shaping up to be the worst recession since 1937, reduced the federal funds rate to nearly zero.1 From then on, with all of its conventional ammunition spent, the Federal Reserve was squarely in the brave new world of quantitative easing. Chairman Ben Bernanke tried to call the Fed?s new policies credit easing, probably to differentiate them from what the Bank of Japan had done earlier in the decade, but the label did not stick.

Creation Date

2010-03

Section URL ID

CEPS

Paper Number

204

URL

https://gceps.princeton.edu/wp-content/uploads/2017/01/204blinder.pdf

File Function

Jel

E020, E310, G010, E580, G210

Keyword(s)

Recession, Federal Reserve, open market committee, banking policy, deflation, monetary policy, United States

Suppress

false

Series

3