An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
The WSJ article's a joke. In fact, the VAST majority of the Fed's operations have been lending operations. Yes, the Tsy purchases would be different in terms of maturity of assets, and the TALF may be (or may not be, in some instances), but these are still not the majority of the increase in balances. What does the WSJ think a primary dealer credit facility, central bank swap, and commercial paper lending facility are? These were the vast bulk of the Fed's expansion in its balance sheet!Scott
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