Steven Kelly on the Challenges of Treasury Equity Funding for 13(3) Facilities
Macro Musings with David Beckworth
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Examining 'Of Last Resort': The Fed's Emergency Lending Model
This chapter analyzes the influential paper 'Of Last Resort,' which critiques the Federal Reserve's Treasury equity model for emergency lending implemented since 2008. It discusses the complex relationship between the Fed's lending authority and fiscal policy, along with the risks of politicization during crises. A comparative study of financial crisis responses from 2007 to 2023 underscores the evolution towards more inclusive, non-favoring support structures and the importance of regulatory frameworks.
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