Henry Curr on the Myths and Uncomfortable Truths about QE
Macro Musings with David Beckworth
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Isn't This a Political Economy Question?
The treasury could be issuing a lot more tea bills, depending on how close the interestrets were. But i guess the question is, isn't this like a political economy question at some level too? Do you see any danger in the central bank's big balance sheets on these fronts? Yes, i think that's absolutely correct. The objects of interest on reserves are bad. Some people say that you can circumvent this by implementing a tearing system where youare only compensating a portion of the res s. And during the house of lords inquiry, f the british parliamentary inquiry into ke, i think this was discussed somewhat. My understanding is that that would in effect be a sort of new
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