Peter Stella on the Quasi-Fiscal Implications of Central Bank Crisis Intervention
Macro Musings with David Beckworth
00:00
The Fed Shouldn't Have Lost Money, but Only on the Mortgage-Backed Security Side
Peter Navarrette: QE is not like this one monolithic linguistic title that covers everything. He says the Fed's issuance of interest-bearing money, which by the way is a liability of the US Treasury,. You could look at the law; Alan Greenspan has repeatedly said central bank can create liabilities for state. So in this case, the Fed sort of followed the same playbook of the global financial crisis and continued to issue these short-term instruments - now being realized.
Transcript
Play full episode
