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Created by
bomtom 160 about 13 days ago

Explain how interest rates are decreased by governmental bond purchases

Interest rates can only be lower than inflation rates by artificial intervention. Governments push down the yields by purchasing bonds. How does this work in layman terms?

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Comments (1)
blessme 0 about 10 days ago

The real yield curve is therefore upward sloping after the increase in government purchases. The impact of government purchases on the real interest rate can also be inferred another way.

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Solutions (5)

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jobbyseal 5k about 12 days ago
12.93 mBCH
Accepted solution
bomtom 160 about 12 days ago
Creator

Great, thank you!

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underwar 793 about 12 days ago
12.93 mBCH
Accepted solution

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dexter 105 about 12 days ago
Declined solution
bomtom 160 about 11 days ago
Creator

Not answering to the question posed.

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huncho 101 about 12 days ago
Declined solution
bomtom 160 about 11 days ago
Creator

Not answering to the question posed.

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silva 0 about 11 days ago
Declined solution
bomtom 160 about 11 days ago
Creator

This is a copy n paste.

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