The Fed sets a global outside spread
Hi Daniel, I would love to see a post with some balance sheet diagrams explaining how "minting the $1T coin" would work. At this point it seems very unlikely, but I'm interested in the theory behind it. In particular, I've heard it said that it's equivalent to issuing debt, but I don't really understand that. Cheers.
Zoltan was saying this exact thing on the Odd Lots podcast a couple days ago. reverse repo facility makes sure interest rates dont go too low, Swap Lines make sure it doesn't go too high. We finally have an officially standing dealer of last resort.
This is perfect analysis Neilson, I will make python presentation credits to Neilson :)