What does dynan mean by the size of the fed''s balance sheet

Assignment Help Finance Basics

Reference no: EM131304090

Karen Dynan, a former Federal Reserve economist now at the Brookings Institution, was quoted as stating: The size of the Fed's balance sheet, which has more than doubled since the financial crisis of 2008, and the large amount of bank reserves sitting at the Fed has made officials at the central bank nervous about the potential for rapid inflation once banks decide to start lending more vigorously again.

a. What does Dynan mean by "the size of the Fed's balance sheet"?

b. Is there a connection between the Fed's balance sheet having doubled and the large increase in bank reserves at the Fed? Briefly explain.

Reference no: EM131304090

Questions Cloud

What specifically did you learn about asians in the u.s : what specifically did YOU learn about Asians in the U.S? Is this something you knew about or didn't? Do not simply summarize the film. We want to know what you thought about the film.

Explain it application for strengthening coordination : Explain IT applications for increasing internal coordination and efficiency. Explain IT application for strengthening coordination with external parties.

What types of business markets does lextant serve : Why is the Lextant product a derived-demand business product?- What types of business markets does Lextant serve?

Short term note payable to acquire the additional inventory : Sims Computing has $1,625,000 in current assets and $636,000 in current liabilities. They wish to increase their inventory levels from the current level of $400,000. They will borrow on a short term note payable to acquire the additional inventory. w..

What does dynan mean by the size of the fed''s balance sheet : Is there a connection between the Fed's balance sheet having doubled and the large increase in bank reserves at the Fed? Briefly explain.

Define synergy in domestic and international mergers : A $1,000 par value, 10-year bond carries a coupon rate of 9 percent. If the current yield of this bond is 8 percent, its market price would be. What factors define synergy in domestic and international mergers and acquisitions? What effect may this h..

How do convenience products and shopping products differ : How do convenience products and shopping products differ? What are the distinguishing characteristics of each type of product?

Coupon bonds on the market with eight years : The Timberlake-Jackson Wardrobe Co. has 10.8 percent coupon bonds on the market with eight years left to maturity. The bonds make annual payments and have a par value of $1,000. If the bonds currently sell for $1,129.70, what is the YTM?

Describe the two international events involving us military : Describe the two (2) international events involving the US military from the past five (5) years you investigated that can be traced back to a foreign policy created after the Civil War.

User Account

All Pages