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This poster examines the impact of the Federal Reserve's unconventional monetary policy actions in response to the Great Recession, and specifically how Large-Scale Asset Purchases (LSAPs) affected bank lending behavior from 2009-2012. Ultimately, I find that the purchasing of Treasury Securities along with MBS (Mortgage-Backed Securities) significantly and positively impacts bank lending, largely through the channel of portfolio rebalancing and increased leverage.
macroeconomics, monetary policy, liquidity trap, quantitative easing, banking
Herold, George, "Examining the impact of the US Federal Reserve's Quantitative easing on Bank Lending, 2009-2012" (2021). 2021 Honors Economics Posters. 10.