Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
How Central Banks Use Credit Easing to Target Specific Markets
In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna explore credit easing—a targeted form of quantitative easing where central banks buy specific private-sector assets to unstick particular credit markets. Using the Federal Reserve's 2020 Corporate Credit Facilities as the central case, they explain how the Fed bought individual corporate bonds and bond ETFs to reopen the primary market for investment-grade and high-yield issuers. Lucas breaks down the mechanics: the Secondary Market Corporate Credit Facility bought ETFs to backstop prices, while the Primary Market…
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