The Bubblemeister panicking?

Brad De Long delong at econ.Berkeley.EDU
Mon May 17 16:45:25 PDT 1999



>
>In response, it appears that the Fed has been making coupon passes
>(outright buying of Treasuries, essentially printing of money) at an
>unprecedented rate: ten since 4/19, including two today for a total of
>$1.6 billion. A couple of questions:
>

I have never understood how the Fed decides where on the yield curve to intervene--whether to limit its purchases to the short-term Treasury bills that are near perfect substitutes for the Federal Funds that it says it is watching, or to buy and sell longer maturities...

Brad DeLong



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