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The rate on bonds only matters relative to the rate of inflation. Bond yields below inflation (in aggregate in the longer term), are stimulative, regardless of
by adam_arthur 3y ago
The rate on bonds only matters relative to the rate of inflation. Bond yields below inflation (in aggregate in the longer term), are stimulative, regardless of the nominal level.
Financial conditions have been easing over the last few months, not tightening. Fed hikes only impact the short end. Long end is market based