In this paper, we examined monetary policy from August 2007, when the Fed engaged in its first unconventional action, through December 2009, when most of the Fed's special lending facilities became inactive. However, the monetary base remained in excess of $2 trillion which was more than double...

This paper examines the effectiveness of several of the Fed's unconventional monetary policies from 2007 to 2010 by comparing interest rate spreads with forecast estimates based on either the pure expectations hypothesis or the preferred habitat theory. We find that the effectiveness of these...