Eric Leeper on the Interactions of Fiscal and Monetary Policy
Macro Musings with David Beckworth
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Is the Fed Draining the Financial System of Liquid Securities?
The fed is opening up its balance sheet more and more to non banks. Money market funds now go into overnight reverse reapo facilities. We need to think about, you know, the liquidity services provided by treasury securities. And why is a ten year bond different from a one year bond?We got to get a handle on that, especially when the fed is doing a lot of yield curve manipulation through balance sheet operations.
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