long end of the curve?, page-30

  1. 238 Posts.
    "However I am NOT convinced that QE is working. Ben B and his mates at the BoE are playing ghosts with the markets"

    Thorburn, your intuition is correct.....The Fed doesn't create net financial assets because they only buy, loan, and otherwise traffic in financial assets. Buying a bond only exchanges one financial asset for another and therefore doesn't change the nominal (dollar) wealth of the economy.
 
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