The scope of monetary policy actions authorized under the Federal Reserve Act
By: David H. Small and James A. Clouse.
Contributors: Clouse, James A.
Series: Finance and economics discussion series ;; 2004-40; Finance and economics discussion series (Online) ;; 2004-40.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "The Federal Reserve Act authorizes the Federal Reserve to undertake various types of discount window loans and open market operations.  While the Federal Reserve generally has not found it necessary to use all types of such authority, there could be circumstances in which the Federal Reserve might need to consider utilizing its statutory authority more broadly than it has in the past.  We examine the limits imposed by the Federal Reserve Act along two dimensions: those types of counterparties and financial instruments with which the Federal Reserve may conduct monetary policy.  In doing so, we develop a theme not commonly pursued in the literature--the ways and extent to which the Federal Reserve Act limits the Federal Reserve from taking credit risk onto its balance sheet.  We also provide some historical perspective on how the current powers of the Federal Reserve came to be authorized"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 8/11/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.