Kansas City Fed: QE effective at zero bound
A Kansas City Federal Reserve paper, published in June in its second quarter Economic Review, shows that purchasing assets on a large scale can effectively lower long term interest rates.
The paper focuses on the efficacy of the Fed's large scale purchases of long term Treasuries as a policy option, when the nominal interest rates were near the zero bound. Taeyoung Doh, the paper's author, argues that when the Federal Open Market Committee (FOMC) began making large-scale purchases of long-term
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