Like, what's its purpose, and why is it so different from normal open-market operations? It seems like its just like open market operations, but just buying longer-term treasuries?
Like, what's its purpose, and why is it so different from normal open-market operations? It seems like its just like open market operations, but just buying longer-term treasuries?
This is a good thing overall. New money enters the economy when the feds exchanges US currency for Treasury securities. Money leaves the economy when the feds exchanges the securities for US currency. Introducing new money and causing inflation keeps people from hoarding money under their mattress as the money devalues slowly over time. It hurts people with money the most and happens slowly enough for everyone else to get their employer to give them a raise.