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Bond Economics: Japan And The Costs Of Bond Yield Control
Costs to Yield Curve Manipulation
The Mitchell post explains why the government can set the entire yield curve. I will instead focus on the potential risks to such a posture.

    Losing the ability to influence the economy via setting interest rates.
    The political cost of changing bond prices.
    The loss of market information.
    Political cost of interest expense.

I will cover these in turn.

by generic on Wed Sep 5th, 2018 at 03:02:17 PM EST
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