Lender of Last Resort No More? The Independence of the Fed at Risk

by Benjamin Domenech on 9:21 am August 21, 2009

“Over many decades and especially in this financial crisis, the Fed has used its balance sheet to be a classic lender of last resort. But its ability to do so depends upon its economic credibility and political independence, attributes the Fed has compromised in this crisis.” We saw what happened with TARP. Should be fun.

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