ABSTRACT

Mitigating COVID-19 Effects with Conventional Monetary Policy   [open pdf - 0B]

From the Document: "The Federal Reserve slashed the federal funds rate in response to the effects of the COVID-19 [coronavirus disease 2019] pandemic. The full impact of the pandemic on the economy is still uncertain and depends on many factors. Analysis suggests that allowing the federal funds rate to fall fast will help the economy cope with the aftermath of COVID-19. In particular, the limited policy space due to the effective lower bound of the federal funds rate before the pandemic reinforces rather than offsets the need for a rapid funds rate decline."

Report Number:
FRBSF Economic Letter 2020-09; Federal Reserve Bank of San Francisco Economic Letter 2020-09
Author:
Publisher:
Date:
2020-04-13
Series:
Copyright:
Federal Reserve Bank of San Francisco
Retrieved From:
Federal Reserve Bank of San Francisco: https://www.frbsf.org/
Media Type:
application/pdf
URL:
Help with citations