• Economics
  • Published 2013

Debt Relief and the Fed's Money-creation Power

  title={Debt Relief and the Fed's Money-creation Power},
  author={William Greider},
Monetary policy is running out of gas. Six years ago, in the heat of crisis, the Federal Reserve's response was awesome. The Fed created trillions of dollars and flooded the system with easy money--enough to stabilize financial markets and rescue wounded banks. It brought short-term interest rates down to near zero and long-term mortgage rates to bargain-basement levels. It provided a huge backstop for the dysfunctional housing sector, buying $1.25 trillion in mortgage-backed securities, nearly… CONTINUE READING