Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Of course, the really smart way to do monetary policy is to not issue a fixed volume of bonds at all.
I wonder why governments don't switch to fixed-rate open-tender bond auctions...

Of all the ways of organizing banking, the worst is the one we have today — Mervyn King, 25 October 2010
by Carrie (migeru at eurotrib dot com) on Wed Dec 22nd, 2010 at 04:22:56 AM EST
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Because that requires a central bank that accommodates such a stance. As long as the CB pretends (and is allowed to pretend) that it's not a part of the government, bonds become fiscal instruments as much as interest rate instruments.

Of course, they could always issue Greenbacks...

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Dec 22nd, 2010 at 06:11:59 AM EST
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