> Quantitative easing (QE) is a monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets (e.g., municipal bonds, corporate bonds, stocks, etc.) in order to inject money into the economy to expand economic activity.
RC_ITR|3 years ago
You stated that receiving coupon payments from the Treasury reduces liquidity. How? I don’t know. But you said it.
Buying more Treasuries makes the fed receive larger coupon payments. Are you saying that process reduces liquidity?
That’s my only question.