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Free Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Could QE2 Cause the Fed To Go Broke? Post prepared  November  8, 2010 Terms of Use:  These slides are made available under Creative Commons License  Attribution—Share Alike 3.0  . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook,  Introduction to Economics ,  from BVT Publishers.
Can Central Banks Go Broke? ,[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ The Federal Reserve Board Building in Washington, DC. The “Fed” is the central bank of the United States Photo by Agnosticpreacherskid, http://commons.wikimedia.org/wiki/File:Marriner_S._Eccles_Federal_Reserve_Board_Building.jpg
Why Banks Need Capital ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ For a more detailed discussion of bank capital and insolvency,  see this earlier post  on Ed Dolan’s Econ Blog
The Fed’s Balance Sheet in Normal Times (2007) ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
The Fed’s Balance Sheet Today (Nov 2010) ,[object Object],[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Why The Fed Normally Needs Little Capital ,[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
Why the Fed’s Balance Sheet is Riskier Today ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/
What Would Happen if the Fed’s Capital Dropped Below Zero? ,[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ ,[object Object],[object Object],[object Object]
Who Could Recapitalize the Fed? ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Stature of Albert  Gallatin at the US Treasury Building Photo by Dan Vera http://upload.wikimedia.org/wikipedia/commons/6/6d/JEFraser_Gallatin.jpg
Complication: The Fed’s Unusual Ownership Structure ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ ,[object Object],[object Object],[object Object],[object Object]
Reality: Recapitalizing the Fed would be Difficult ,[object Object],[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/ Tea Party Protest, Hartford CT Photo by Sage Ross, http://commons.wikimedia.org/wiki/File:Tea_Party_Protest,_Hartford,_Connecticut,_15_April_2009_-_036.jpg
Bottom Line: Could the Fed Go Broke? ,[object Object],[object Object],[object Object],Post P101108 from Ed Dolan’s Econ Blog  http://dolanecon.blogspot.com/

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Could QE2 Cause the Fed To Go Broke

  • 1. Free Slides from Ed Dolan’s Econ Blog http://dolanecon.blogspot.com/ Could QE2 Cause the Fed To Go Broke? Post prepared November 8, 2010 Terms of Use: These slides are made available under Creative Commons License Attribution—Share Alike 3.0 . You are free to use these slides as a resource for your economics classes together with whatever textbook you are using. If you like the slides, you may also want to take a look at my textbook, Introduction to Economics , from BVT Publishers.
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