In response to the financial crisis, the Federal Reserve developed new credit instruments during late 2008 and early 2009 for the purpose of supporting the liquidity of financial institutions, and restoration of credit flows. These instruments represented a new method of directly funding targeted financial markets. Bank credit flow, however, has been anemic during the crisis and recovery period. It is argued here that the precedent established by the Federal Reserve for direct credit market intervention is currently needed to support the substantially lagging bank loans. Specific rationales for the evolution of the suggested tools of credit easing are presented.
Marwan El Nasser and Richard Robinson. "United States Monetary Policy during the Financial Crisis, Credit Facilities Development and Potential." Proceedings of the New York State Economics Association. vol. 3, September 2010, p. 105-114
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