Jeffrey Lacker on the History of Fed Credit Policy and the Four Doctrines of Fed Lending
Macro Musings with David Beckworth
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Evolving Federal Reserve Credit Policies
This chapter explores the historical development of the Federal Reserve's lending practices, particularly highlighting the shift towards supporting failing banks since the 1960s. It examines the political and economic consequences of these policies, especially during significant financial crises like those in 2007 and 2020. The discussion emphasizes the complexities surrounding government interventions in the banking sector, the implications of regulatory changes, and the ongoing debate about which institutions are deemed 'too big to fail.'
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