Insight & Thought Leadership on the Global Economy

One of our most insightful economists examines the extraordinary actions the Federal Reserve, the Treasury, and other authorities took to cope with the economic catastrophe that followed the financial crash of 2008. (Paying the Price) A readable, balanced account of what they did, why they did it, and how well it worked out—so far. — Alice M. Rivlin, the Brookings Institution, former Director of OMB and Vice Chair of the Fed

Joint Economic Committee

Mark Zandi’s testimony before the Joint Economic Committee on March 26th, 2014:

“Unwinding Quantitative Easing: How the Fed Should Promote Stable Prices, Economic Growth and Job Creation”

The Federal Reserve did an admirable job navigating through the financial crisis that began in 2007, the resulting Great Recession, and the subsequent economic recovery. Without the Fed’s aggressive actions, the financial system would have collapsed and the economy would have suffered a depression.

The Federal Reserve took a range of extraordinary steps to quell the financial panic. It established new credit facilities to provide liquidity to financial institutions and markets. To stabilize the banking system, the Fed required the nation’s largest bank holding companies to conduct stress tests and raise enough capital to withstand the worst credit losses on record.

View the full testimony here.

 

 

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