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Archive of entries posted on 12th December 2013

How the Fed’s strange monetary policy works

Yesterday the market plummeted because there was talk — again — that the Fed would taper (i.e. reduce) its its monthly purchases of treasuries? Last night Michael, my bright son, asked: How does the printing of money, buying bonds and keeping interest rates low benefit the stockmarket, and why? My friend Dan Good explains, “Very […]