open market actions
The Fed's Historic Innovation
Read the full article: http://www.businessweek.com/bwdaily/dnflash/content/mar2008/...
For the last quarter-century, the Federal Reserve has basically used one tool—the Fed funds rate—to run monetary policy. When the economy was running too hot, the Fed raised rates. When the economy was running below potential, the Fed cut rates. It was simple, and at the core, straightforward.
