Longer-term yields declined by relatively large amounts on days when the FOMC made specific QE announcements. However, the objective of QE has been to reduce long-term yields beyond the levels they would have reached without QE.

The continued use of a currency depends on the stability of its value and the existence of alternatives for achieving final settlement.

A more interesting and economically relevant definition of "monetizing the debt" is based on the Fed's motivation rather than its actions.

Would financial markets and the economy have been better off if the Fed pursued a policy of quantitative easing sooner?

Current excess reserves could create a massive increase in the money supply if banks significantly increase their lending or investing.

The FOMC’s two-pronged approach involves a potential conflict: forward guidance assumes a high degree of substitutability across the maturity structure, while quantitative easing assumes a low degree.

In contrast, most economists believe that central banks have little or no ability to directly affect employment. The effect of monetary policy actions on employment is indirect and stems from central banks’ ability to affect output growth in the short run and achieve price stability in the...

The average relationship between changes in the 10-year Treasury yield and changes in the funds rate over the 1987-2007 sample period is not indicative of the relationship between changes in the funds rate and changes in the 10-year Treasury yield that existed for more than a decade prior to the...

Many analysts fear that a rising saving rate could hamper the economic recovery.

Policymakers should not think of price stability and economic stability as competing objectives but as complements - the best way to achieve the latter is to be firmly committed to achieving the former.