Wednesday, January 1, 2020

Operation Twist: Is it an Antibiotic with Side Effects?


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.

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