Federal Reserve Policy Before, During, and After the Fall

November 2014
in Across the Great Divide: New Perspectives on the Financial Crisis, ed. Martin Baily and John Taylor (Hover Institution, 2014)

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Correspondingly, my evaluations of the Federal Reserve’s policy actions are dramatically different pre- and post- Lehman Day. In brief, the Fed deserves mixed but rather poor grades for the years and days leading up to (and including) the fateful Lehman decision, but quite excellent grades thereafter. Most of this short paper is devoted to explaining that last sentence.