Desmond King, Andrew W Mellon Professor of American Government, University of Oxford

The paper investigates how the Federal Reserve responded to the Great Recession which hit the housing and financial markets in 2008. Using FOMC minutes and other primary sources, it argues that the Fed devised radical new measures with which to address the crisis – including extending loan terms and relaxing collateral lending standards – and exploited the emergency powers under its Section 13(3) legislative authority. This set of responses differentially assisted the financial sector and not ordinary voters.

PS 595 Credit.