Now that the ECB has demonstrated how it can set term bank rates out to a year (and minimize the need for the interbank markets) the door is open to same for any maturity.
And it also paves the way for other CB’s to do the same as they inch closer to my long standing proposals.
Again, for CB’s it’s about price (interest rates), not quantity (size of operation, CB’s balance sheet, etc).
The effects on the economy are those of the resulting interest rates, and not the quantities involved in the CB’s operations.
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