Barnet Wagman wrote: > > Operation Twist? What does that refer to? During the Kennedy Administration, the Treasury and the Fed tried to "twist" the yield curve, or "invert" it as we say today, by purchasing long bonds and selling short ones. The idea was to stimulate domestic aggregate demand with low long term interest rates while protecting the dollar with high short term rates. At the time, mainstream economists thought the Treasury and the Fed would surely fail because longer maturity bonds are more risky than short maturity bonds, so that market forces will ensure that the yield curve is always positively sloped. What mainstream economists think about the yield curve has changed a lot since the early 1960s. Edwin (Tom) Dickens
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- Re: Re: Re: Re: Re: Re: U.... Ellen Frank
- Re: Re: Re: Re: Re: Re: Re... Jim Devine
- Re: Re: Re: Re: Re: Re: U.... Edwin Dickens
- Re: Re: Re: Re: Re: Re: Re... Jim Devine
- Re: Re: Re: Re: Re: Re: Re... Edwin Dickens