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"Realizing that their traditional instruments were inadequate for responding to the crisis that began on 9 August 2007 …, Federal Reserve officials improvised. Beginning in mid-December 2007, they implemented a series of changes directed at … examine the Federal Reserve's conventional and unconventional responses to the financial crisis of 2007-2008"--National Bureau …
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The small decline in the value of mortgage-related assets relative to the large total losses associated with the financial crisis suggests the presence of financial amplification mechanisms, which allow relatively small shocks to propagate through the financial system. We review the literature...
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