BONUS: George Selgin on the Fed Taper and Shrinking the Fed’s Balance Sheet
Macro Musings with David Beckworth
00:00
Does the Balance Sheet Matter, or Does It Matter?
The Fed's main lever is their overnight policy target rate. So they're going to use that, lean on that more than balance sheet reduction. But the tension is really in the theories, isn't it? When you get right down to it, right? They make up their mind, does the balance sheet matter, or doesn't it? And how?
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