Liquidity and the Role of the Lender of Last Resort – Speech at the Brookings Institution
By Ben Bernanke, Distinguished Fellow in Residence, the Brookings Institution
Various commentators have praised the Fiscal Year (FY) 2013 sequester of domestic and defense discretionary spending. Many hope that those across-the-board cuts remain in FY 2014.
This week, 650,000 civilian employees of the Department of Defense (DoD) begin an 11-week, one-day-a-week furlough program. Until now, only non-defense federal agencies had begun furloughs of civilian employees, with approximately 170,000 furloughed workers. With the DoD furloughs, the impact…