Use of the Federal Reserve's repo operations and changes in dealer balance sheets

Mark Carlson, Zack Saravay and Mary Tian
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Mary Tian: https://www.federalreserve.gov/econres/mary-tian.htm

No 2021-08-06-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Before the 2008 financial crisis, the Federal Reserve (Fed) regularly conducted repurchase agreements (repos) in a fairly modest size with primary dealers to adjust the supply of reserves in the banking system and to keep the federal funds rate at the target set by the FOMC. During the economic downturn that followed the financial crisis, the Fed engaged in large scale asset purchases in order to provide additional monetary accommodation, and those purchases significantly increased the supply of reserves and eliminated the need for the Fed to engage in repo operations to increase reserves in the system.

Date: 2021-08-06
New Economics Papers: this item is included in nep-isf, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2021-08-06-1

DOI: 10.17016/2380-7172.2961

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