Monday, January 05, 2009

What is the Fed Up To?

Paul Kedrovsky's blog pointed to this blog by Woodward and Hall which has a very interesting post about the changes in the Fed's balance sheet. I just wish they'd explain more about what are the changes in monetary policy that has occurred that mean we need to interpret the Fed's actions differently than in the past. I guess one is paying interest on bank reserves? That would explain the huge increase in that variable.

No comments: