>>> [EMAIL PROTECTED] 04/06/01 04:00PM >>>
[EMAIL PROTECTED] wrote:
>I wrote:>>So what? I'm sure that capitalism can adapt to not having
>a T-bill market.<<
>
>Asks Doug: > It can adapt, but happily? Where else you going to park
>your cash balances in
>a riskless instrument? What will the Fed use for open market
>operations? Where will
>central banks keep their reserve dollars? What are you going to use
>as your riskless
>interest rate in a CAPM formula? <
>
>how about the interest rate on money?
Like what, commercial paper? Fed funds? These aren't purely riskless
assets, unlike T-bills. Even the bluest-chip bank or corporation
lacks taxing power and nuclear weapons.
((((((((((
CB: I thought central banks weren't important in the Anglo-American ,as opposed to
German, system ?
