3 ms·
A long time, if they want. They can also print money, the second lever at their disposal. There's a fascinating video about this, from Ray Dalio. Give it a l
by RickJWagner 7y ago
A long time, if they want.
They can also print money, the second lever at their disposal.
There's a fascinating video about this, from Ray Dalio. Give it a look, it's pretty interesting.
https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
- OscarCunningham 7y agoPrinting money and lowering intrest rates are the same lever. When they lower interest rates more people sell bonds. The Fed buys those bonds with printed money. When the Fed prints money they then buy something with it. When they buy bonds it lowers interest rates. They sometimes buy shares but that has the same effect.