2min chapter

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The European Central Bank Goes On The Offensive | Daniel Neilson (LIVE)

Forward Guidance

CHAPTER

Using Bernanke's Framework You Would Reach an Incorrect Conclusion

Using, uh, bernanke's incorrect framework you would reach an incorrect conclusion. Treasury securities are inherently liquid. So there's no way to think about market dysfunction or concentration of certain kinds and bumps on the yield curve. The theory doesn't speak to those issues at all Dan. But like we know that this market can blow up and if that happens that would be a huge deal for the entire global monetary system so can we try not to let that happen?

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