December 07, 2012 at 12:41 PM EST
Inflation and NGDP Growth Determines Bond Prices, Not What the Fed Buys
I notice that lots of commenters insist that bondholders gain when the Fed injects money by buying bonds. Even if this were true, it would have no bearing on my criticism of Richman. That’s because any effect on bond prices would be identical if the Fed injected money by paying government salaries in cash, rather [...]
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