This entry was posted on Thursday, November 18th, 2010 at 10:14 am and is filed under ECB.
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4 Responses to “ECB was in the market buying a small amount of Greece and Portugal bonds (but not Ireland)”
Warren. We know that when the Fed purchases assets it does so by crediting the seller’s account at the Fed. There is nothing operationally that precludes this as the Fed is issuer of the currency. Does the ECB do the same when it purchases peripheral debt? Or are they operationally hindered (political constraints; lack of fiscal union) and thus have to draw funds from the EFSF? Please pardon my ignorance if this has been addressed in prior posts.
Off topic, the following site was created to facilitate the work of researchers adopting the “stock-flow-consistent” methodology for building economic models, pioneered by Wynne Godley, and popularized through the book Monetary economics by Wynne Godley and Marc Lavoie.
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