Friday, October 20, 2017

Monetizing Debt

All my instincts
They return
The grand facade
So soon will burn
--Peter Gabriel

Comparison of the extent to which various central banks are buying their country's sovereign bonds (a.k.a. 'monetizing debt' thru their quantitative easing (QE) programs. At its peak, Fed bond buying never exceeded net issuance.

Other central banks have been much more profligate. BOJ has been buying bonds at the rate of 3x net issuance.

ECB has been going at it at the rate of 7x net issuance.

The Fed looks like a tightwad in this era of CB profligacy.

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