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Nobody is ever involuntarily sitting on bonds, they are easily liquidated at any point; you sit on bonds because you don't want to spend the money. >If it does
by kaonashi 13y ago
Nobody is ever involuntarily sitting on bonds, they are easily liquidated at any point; you sit on bonds because you don't want to spend the money.
>If it doesn't, then it's pretty much a failure as a quantitative easing.
It doesn't do much of anything, true.
- wintersFright 13y agoCentral Banks sit on bonds because holding USD in their reserve banks does not earn interest.
- kaonashi 13y agoCentral banks sit on bonds because they buy them as part of their open market operations, and they are legally required to make a market for treasuries so the government is funded.