Board of Governors of the Federal Reserve System

crisis, as captured by shocks to the marginal efficiency of investment...response of policy to the weak economy, rather than by policy shocks.

response to the recent banking turmoil in March 2023. Comments on the

responses to the Open Mar- ket Desk’s Survey of Primary Dealers and Survey...responses was wide. The SOMA manager noted that survey responses suggested

response of consumption to permanent and transitory income shocks for ...response. This short-term response contrasts with the assumption in BPP

crisis has thus far been unusually slow and households and frms now anticipate

I: Change in the price index for personal consumption ex pend i lures Monthly 12-month percen1 change 3.0 2.5 2.0 1.5 1.0 .5 + 0 2010 20 11

Crisis and its aftermath. Figure 2 shows unemployment and core, rather...crisis, core inflation barely budged. As a thought experiment, look at

Crisis. Perhaps most significantly, neutral interest rates appear to have...response to shocks. 7 See Yellen (2015) for a discussion of inflation

Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. Bank Lending

crisis. But here, I think, the historical contrast is somewhat reassuring...crisis. High interest rates in the early 1980s, in response to the Great