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How Did the Fed Funds Market Change When Excess Reserves Were Abundant? (New York Fed, 15 page read) The switch to significant excess liquidity following the financial crisis and introduction of renumeration on excess reserves (IOER) changed both the main players in the fed funds systems and their motivation. But the effective fed funds rate remained within the target range and in line with other overnight funding rates.
Inflation at Risk (Federal Reserve, 65 page read) Fed researchers find that tight financial conditions create “substantial” risks of low inflation with rising credit spreads shifting the distribution of inflation to the left. This adds to earlier explanations of anchored inflation expectations and liquidity constraints as the drivers behind low and stable inflation.
Forward-Looking Monetary Policy and the Transmission of Conventional Monetary Policy Shocks (Federal Reserve, 30 page read) Incorporating Fed forecasts and the introduction of forward-looking policy provides more consistent results of the impact of monetary policy on output and prices than has been modelled before.