The economics of money, banking, and financial markets

Inside the Fed  A Day at the Trading Desk  352

Discount Policy and the Lender of Last Resort .................................................................... 353

Inside the Fed  Using Discount Policy to Prevent a Financial Panic  355

Reserve Requirements ......................................................................................................... 356

Interest on Reserves ............................................................................................................ 356

Relative Advantages of the Different Tools .......................................................................... 357

Nonconventional Monetary Policy Tools and Quantitative Easing ..............................357

Liquidity Provision ............................................................................................................. 358

Large-Scale Asset Purchases ................................................................................................ 358