Quantitative Easing programs between 2008 and 2015 dramatically transformed the Fed's balance sheet in size, in liability composition, and in asset composition. While the QE programs accelerated the monetary base (M0) at an unprecedented rate, they did not accelerate the quantity of money held...

"Financial crisis" is sometimes regarded as synonymous with "economic crisis", but this is an oversimplification and risks missing the feedback loops between the financial and real economies. In this paper, the role of money is revisited in the context of distinguishing the real economy from the...

This study examines the problem that a central bank may face after exiting a monetary quantitative easing policy. It develops a simple dynamic optimization model of a central bank, which finds that if the bank needs to absorb a substantial amount of excess reserves when exiting, the monetary...