Wow, monetary policy is getting exciting. Yesterday the Fed announced a new policy known as the Term Auction Facility program (TAF). Actually the announcement was coordinated with several other central banks. For a good overview, read this WSJ piece. Basically the Fed - in an attempt to alleviate liquidity constraints in the market - is going to manage the discount window, via quantity rather than price.
Some other commentary Marginal Revolution, Fortune Magazine, and Economistsview. Expect there to be substantially more discussion of this in the intervening days.
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