2. Corrective Measures
✤ Expansion of the Fed balance sheet was necessary
"...because our economy is very weak and inflation is
very low. When the economy begins to recover, that
will be the time that we need to unwind those
programs, raise interest rates, reduce the money
supply, and make sure that we have a recovery that
does not involve inflation.”
3. 01
Banks, Depository
Institutions and Financial
Institutions
✤ Traditional Discount Window
✤ Term Auction Facility (TAF)
✤ Primary Dealer Credit Facility
(PDCF)
✤ Term Securities Lending
Facility (TSLF)
✤ Currency swap agreements
(Dollar Swap Lines)
4. Investors and Borrowers
✤ Commercial Paper Funding Facility (CPFF)
✤ Asset backed Commercial Paper Money Market
Mutual Fund (AMLF)
✤ Term Asset-Backed Securities Loan Facility (TALF)