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0 pointshnaccy6y ago0 comments

How can the Fed support full employment if governments are forcing people to stay inside and business to close?

0 comments

By making lending to the closed businesses so attractive that they can stay open over the course of the quarantine. (Likewise people can stay fed.)

But that's not what this is doing at all. This is keeping existing corporate debt artificially priced.

Unless they lower rates to negative, new debt isn't getting any cheaper.

j / k navigate · click thread line to collapse

0 pointshnaccy6y ago0 comments

How can the Fed support full employment if governments are forcing people to stay inside and business to close?

By making lending to the closed businesses so attractive that they can stay open over the course of the quarantine. (Likewise people can stay fed.)

But that's not what this is doing at all. This is keeping existing corporate debt artificially priced.

Unless they lower rates to negative, new debt isn't getting any cheaper.

j / k navigate · click thread line to collapse