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Would financial markets and the economy have been better off if the Fed pursued a policy of quantitative easing sooner?
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Experience demonstrates that raising reserve requirements is surely not the best way to eliminate excess reserves.
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FDI flows from overseas parent companies contracted, but intracompany debt and reinvested earnings were affected much more than equity FDI.>
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Firms started during recessions, especially those started in 2008, have grown less during the first 3 years of their life than those started in non-recession years.
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The boom in real estate prices during the early 2000s and the subsequent bust were key factors underlying the recessions in the United States and Europe.
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The Nordic bank resolution is widely regarded as among the most successful in history. ; Also issued as Monetary Trends, April 2009
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Caution is necessary when making inferences based solely on aggregate loans data.
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The Federal Reserve Board has used Section 13(3) of the Federal Reserve Act to create several new lending facilities to address the ongoing strains in the credit market.
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Federal Reserve programs during the recent financial crisis sought to provide liquidity to individual firms or industries. An interesting additional question is whether the aggregate amount of liquidity in the economy was appropriate before and during the recent financial crisis.
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