The Present Status of Monetary and Fiscal Policy
نویسنده
چکیده
Attention gradually shifted to open market operations. With this activity the monetary authority did not have to await the initiative of the commercial banks in the creation of reserves. Through an affirmative use of open market purchases or sales, the Federal Reserve had acquired the initiative in the creation of reserves. But this did not prove to be the perfect answer. Particularly was this true when the problem was to encourage a recovery from low levels of business activity. Excess reserves could be created, but what if people did not want to borrow?
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