The Ethics of U.S. Monetary Policy in Response to the Financial Crisis of 2007-2009

Since the financial crisis first erupted in the summer of 2007, the US Federal Reserve has sought to contain negative spillovers into the real economy by dramatically loosening monetary policy. Initially, this was done by lowering its key lending rates, but as the crisis has worsened, and rates have...

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Bibliographic Details
Published in:Libertarian papers 2009-07, Vol.1 (31)
Main Author: Bragues, George
Format: Article
Language:English
Subjects:
Bankruptcy
Central banks
Deflation
Economic crisis
Ethics
Financial institutions
Interest rates
Libertarianism
Monetary policy
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Summary:Since the financial crisis first erupted in the summer of 2007, the US Federal Reserve has sought to contain negative spillovers into the real economy by dramatically loosening monetary policy. Initially, this was done by lowering its key lending rates, but as the crisis has worsened, and rates have approached closer to zero, it has resorted to expanding its balance sheet in a historically unprecedented fashion. The Fed's total assets have more than doubled to nearly $2 trillion since the summer of 2007.
ISSN:1947-6949