3 ms·
I think you need to go back to your text books. Treasuries aren't money. They are are super liquid and with repos you can very easily turn them into money but t
by rr888 4y ago
I think you need to go back to your text books. Treasuries aren't money. They are are super liquid and with repos you can very easily turn them into money but they aren't money as measured by m1, m2, mb etc. Treasury bills (<12m) are included in m4.
- imtringued 4y agoHe means that there are non US banking instituions that need US treasuries outside the US but if the Fed is buying them and turning them in reserves they are locked in the US banking system. Central banks of other countries actually use US treasuries not dollars as their medium of exchange between each other. QE actually forces them to hold their medium of exchange in the US banking system. So paradoxically QE can have the opposite effect by turning an asset with wide acceptance into an asset that barely anyone is allowed to access outside the US.