At what point in the recession, the Fed should institute possibly risky expansionary monetary policy, namely aggressive Fed buying long-term Treasury bonds? Federal Reserve Board Chairman Ben Bernanke faced with this question in 2009. Suitable for both primary and elective courses MBA in global financial markets, this case examines the risks associated with the policy so dangerously close to the monetization of the fiscal deficit. Factors students consider the current and future level of U.S. long-term interest rates from the point of view of Bernanke. Already the Federal Open Market Committee lowered the federal funds rate from 5.25% in 2007 to about 0%, it also began almost inconceivable effort to free frozen credit markets and the weakening of credit to ease monetary conditions further, "Hide <. br /> by Francis Warnock Source: Darden School of Business 21 pages. Publication Date: November 25, 2009. Prod. #: UV3951-PDF-ENG
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