Japan Central Bank

Wed Sep 9 12:22:22 PDT 1998

>Nowell: buying commercial paper is not a big CB innovation. The Bank of
>England has been a commercial discounter for centuries.

The B of E has not been a CB for centuries. Govt. debt markets only became the fulcrum of the money markets, and thus of CB operations, gradually since W.W. I, a time when the Fed, not the B of E, is at the center of the action.

>Buying other kinds of loans--well, maybe. Almost any asset can be
>monetized. Gold in addition to govt. bonds is one...

It takes CB purchases to monetize gold!? I think I'll stop here...

Edwin Dickens

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