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Contribution Details

Type Bachelor's Thesis
Scope Discipline-based scholarship
Title The Fed’s monetary policy over the financial crisis and its influence on security prices
Organization Unit
Authors
  • Martin Nef
Supervisors
  • Kjell G. Nyborg
  • Jiri Woschitz
Language
  • English
Institution University of Zurich
Faculty Faculty of Economics, Business Administration and Information Technology
Number of Pages 58
Date 2015
Abstract Text In response to the financial crisis in 2008, the Federal Reserve created several facilities to lower financial turmoil and support financial markets. This thesis pointed out the impact on the Fed’s balance sheet and analyzed the composition of the appropriated collateral of each program. Thereby I found out that, beside the large-asset scale purchases, the Term Auction Facility had the highest and the Term Assed-Backed Loan Facility the longest effects on the size of the balance sheet. By accepting collateral, the Fed often was confronted with the trade-off of covering risk or providing liquidity to the markets.
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