If you get a headache, as I do, from the arguments and counter-arguments surrounding the Federal Reserve Board policy known as QE2, you may wish to briefly ponder the lessons of a simpler time – the decade of the 1920s, when the Federal Reserve Board first learned how to moderate the business cycle by buying and selling government securities in the open market.
When Open Market Operations Were New
If you get a headache, as I do, from the arguments and counter-arguments surrounding the Federal Reserve Board policy known as QE2, you may wish to briefly ponder the lessons of a simpler time – the decade of the 1920s, when the Federal Reserve Board first learned how to moderate the business cycle by buying and selling government securities in the open market.