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?
sorry this is so late, I've been working all week. What do you mean open-market operations don't affect the money supply? I was under the impression that they did increase/decrease the money supply depending on whether bonds were being bought or sold by the fed.
Ah yes sorry you're absolutely right. I used the term sloppily. I meant it in the way that regular market activity just shifts money from one market participant to another. While the central bank does so money supply when it engages in the market.