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  • FED open market ops and primary dealers

    I'm trying to figure this out. When the FED conducts open market operations to buy treasuries, it adds to its reserves, allowing credit to be created many times larger than the value of the treasuries. This will cause inflation. My question is this: who is actually purchasing the treasuries? Do all...
    Posted to Economics Questions (Forum) by meambobbo on Mon, May 19 2008
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