They merely repeat the words, as it is intended. With major fanfare and widespread praise, the Federal Reserve weeks ago had announced it was going to buy corporate bonds. Well, not actual bonds but ETFs. It hasn’t bought a single one of those, either, at least not until today and yet the program is being assigned the usual magical properties. [...]
Is it really that simple? The central bank hands out “free” money or “supports” markets with purchases, so that’s all there is to it. Once Jay Powell or Christine Lagarde moves in with the big bazookas, who’s not going to climb on board the money train as it rockets out of the inflation station?If only Weimar was that easy. Easy [...]
If a central bank controls the money supply, then it can, in theory, control inflation. And if it accomplishes this feat through the use of a short-term money rate, then what part of bond yields would lie beyond its power? None.That’s what bond yields are, after all, in theory the carrying forward of inflation expectations into the future built upon [...]
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