4 ms·
Your model is missing the Fed, which can buy an almost infinite number of bonds to bring the effective interest rate down to whatever it wants.
by lxgr 2y ago
Your model is missing the Fed, which can buy an almost infinite number of bonds to bring the effective interest rate down to whatever it wants.
- misja111 2y agoYou mean, by printing money. Well, if they would do that, the USD would sink even more and thus also the US bonds.