Monday, November 16, 2015

Is US Monetary Policy Made in China? by Barry Eichengreen - Project Syndicate

Is US Monetary Policy Made in China? by Barry Eichengreen - Project Syndicate



...Menzie Chinn of the University of Wisconsin has examined the impact of foreign purchases and sales of US government securities on ten-year Treasury yields. His estimates imply that foreign sales at a rate of $60 billion per month raise yields by ten basis points. Given that China has been at it for 2.5 months, this implies that the equivalent of a 25-basis-point increase in interest rates has already been injected into the market....









Read more at https://www.project-syndicate.org/commentary/why-fed-is-delaying-interest-rate-liftoff-by-barry-eichengreen-2015-11#ymVvJ728EIbzhf4b.99

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