Various Statements by Federal Reserve Governors have indicated considerable degrees of pessimism with respect to the power of monetary policy to control economic conditions. The unconventional tools utilized by the Fed during the 2008-09 crisis were aimed at and effective in maintaining (stimulating) loan flows in particular markets. These new tools demonstrated considerable potency for achieving immediate results, although they were abandoned after the peak of the crisis. In this paper, long-term-historical and recent evidence shows that loan flows provide a more efficacious monetary policy target than the Federal-funds rate utilized since 1954.
Richard Robinson, Marwan El-Nasser and Mary Ann Robinson. "Loan Flows and Monetary Policy." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 171-181
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