Sunday, March 27, 2016

QE lowered long term rates?

Fischer claims it once again. 

Ten year rate on blue. QE  in red, for the umpteenth time.

Take out the trend in blue, and we get mostly noise.   The trend is inflation declining over the monetary cycle, while debt rises. More effort making interest payments and less effort experimenting with discretionary funds implies lower implicit deflator over time.

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