Peter Stella on Fed Losses, Backdoor Fiscal Stimulus and Credit Easing
Macro Hive Conversations With Bilal Hafeez
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The Fed Facilitated the TGA Before the Global Financial Crisis
Before the GFCs, some Treasury started building up balances at the Central Bank in case they were shut out of markets. So this is a bit like if you want to talk about it, helicopter money. The Fed facilitated this incredible increase in borrowing by the Treasury and enabled the Treasury to kind of build this reserve.
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