What is the fed exit strategy

Assignment Help Business Economics
Reference no: EM131991598

What is the Fed's exit strategy? Has it changed over time? Will it work? Are the size of mutual funds a problem? Explain.

There was an answer with this question, but it's out of date (answer from 2014). Could you give me a more current and up-to-date answer to this question?

Here is the 2014 version answer just in case:

The current exit strategy is assets sales after policy rate hikes. In 2011, it was asset sales before policy rate hikes. Short-term forward guidance would have to be changed ("considerable period") both before the first policy rate hike and the long term "long for long" pledge would have to be modified as well. The balance sheet will be large for a very long time, increasing the chancing of an asset bubble or price inflation developing.  No one knows for sure if it will work. Yes, the size of mutual funds is a problem as they may be prone to fire sales in a replay of the summer of 2013.  So leverage might not be the big problem once rates rise.

Reference no: EM131991598

Questions Cloud

Forecasts of future inflation is a move towards : Do you think the Fed's recent changes to explicitly tie the next policy moves to the unemployment rate and forecasts of future inflation is a move towards
About relationship among interest rates-time-future sums : What does all this tell you about the relationship among interest rates, time, and future sums?
Is the federal budget deficit a problem : Is the federal budget deficit a problem? And if it is, what can be done about it?
Recalculate part ?using compounding period : Recalculate part ?(a?) using a compounding period that is? (1) semiannual and? (2) bimonthly.
What is the fed exit strategy : What is the Fed's exit strategy? Has it changed over time? Will it work? Are the size of mutual funds a problem? Explain.
What are the four main types of financial services : What are the four main types of financial services? Which type of financial services will help you accomplish your short, intermediate
Compare and contrast human capital : Compare and contrast human capital, H, and physical capital, K. How is H different from labour, L?
Consultant to mayor office of his hometown of springfield : Bob Terwilliger received ?$14,647 for his services as financial consultant to the? mayor's office of his hometown of Springfield.
Design a two day training program : Design a two day training program for a group of twenty (20) employees - Develop the training objective for this program based on an analysis of business

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd