Michael Beauregard Seminar in Macroeconomics: Wall Street QE vs. Main Street Lending
Cynthia Wu, Notre Dame
Wednesday, September 22, 2021
4:00-5:20 PM
Virtual
Abstract: Monetary and fiscal authorities reacted swiftly to the COVID-19 pandemic by purchasing assets (or "Wall Street QE") and lending directly to non-financial firms (or "Main Street Lending"). Our paper develops a new framework to compare and contrast these different policies. For the Great Recession, characterized by impaired balance sheets of financial intermediaries, Main Street lending and Wall Street QE are perfect substitutes and both stimulate aggregate demand. In contrast, for the COVID-19 recession, where non-financial firms faced significant cash flow shortages, Wall Street QE is almost completely ineffective, whereas Main Street lending can be highly stimulative.
* To join the seminar, please contact at econ.events@umich.edu
* To join the seminar, please contact at econ.events@umich.edu
| Building: | Off Campus Location |
|---|---|
| Location: | Virtual |
| Event Type: | Workshop / Seminar |
| Tags: | Economics, seminar |
| Source: | Happening @ Michigan from Department of Economics, Michael Beauregard Seminar in Macroeconomics |
