The Failure of U.S. Loanable Funds to Grow as Much as Federal Reserve Securities Purchases During QE: The Role of Foreign Banks

John Heim

Chapter Chapter 9 in Why Fiscal Stimulus Programs Fail, Volume 1, 2021, pp 163-174 from Springer

Abstract: Abstract This chapter shows that FR purchases of securities are not always matched by an equal increase in loanable funds in U.S. banks; it is often less. The best explanation for this is that the FR buys substantial amounts of securities from foreign banks, increasing the loanable funds available in foreign countries, but not increasing loanable funds in the U.S.

Keywords: Loanable funds; Monetary policy; Federal Reserve securities purchases (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-65675-1_9

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DOI: 10.1007/978-3-030-65675-1_9

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