Steven Kelly on Crises, Stability, and the Fed’s Role in Financial Markets
Macro Musings with David Beckworth
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Is the Fed a Special Purpose Vehicle?
The fed can only discount notes, drafts and bills of exchange. The s p v is a special purpose vehicle that allows the fed to set off an off balance sheet entity. So it never violated the mattra that you'd often hear j pal say, that we lend, we don't spend.
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