Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

That’s not how I would think about it. I would think about it as giving, if it works, depository institutions increased incentives to expand their lending by providing them with a great deal more funding than they actually need and thereby increasing spending propensities. I would see this more as part of a package of various ways to stimulate spending by reducing real interest rates but not as something that would feed through directly to inflation. Rather this would more properly be viewed, at least in the way I think about things, as fighting deflation rather than trying to cause a higher positive rate of inflation.

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