Since the end of the Great Recession, interest rates have been at historic lows—in some cases, close to zero. How is expansionary monetary policy, or more specifically a open market purchase, supposed to work? How do near-zero interest rates limit the ability of expansionary monetary policy to work?
How has the Fed responded to this quandary? That is, what policies has the Fed conducted?
how effective has the Fed’s policy been as a response to the Great Recession?