Central Banking (CB): What were your thoughts on the plan when it was first announced?
Adam Posen (AP): I thought it was a step forward, primarily because it moves from treating institutions in an ad hoc manner to treating a whole asset class.
And it is likely to succeed in easing the block in the commercial paper market and contain the damage to the real economy. Until two weeks ago, this was limited to the financial system. The only thing that had changed was that there was a panic. And usuall