Perhaps, Operation
Twist is a good signal when the economy is doing well, and non-governments do
not recognize the wellness. Unfortunately,
the “signal” cannot make up for a poor economic scenario – and can be
counter-productive, if the twisted interest rates do not sustain. Experience of
the past tells us that once investors get used to short-term securities, it
gets difficult to bring about term extension. All in all, short-term gains to
be weighed against long-term, deeper side effects.