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March 27, 2008

New monetary policy tools on the Fed's website

The Fed has added 3 new monetary policy tools on their webpage. Numbers 1-3 are in every economics textbook. Number 4 was new back in February when I first checked with my macro class. Numbers 5 and 6 were added in March.

  1. Open Market Operations
  2. The Discount Rate
  3. Reserve Requirements
  4. Term Auction Facility
  5. Primary Dealer Credit Facility
  6. Term Securities Lending Facility

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