Quote:
Originally Posted by redpoint5
So, they are counteracting deflation?
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They are trying to prevent a liquidity trap
https://www.investopedia.com/terms/l/liquiditytrap.asp
Which then leads to deflation. (See Japan in the 90's and 00's)
Trying to prevent a freeze in the repo market. (Repurchase-agreement operations) These are the very short term loans banks and other institutions make to each other to balance their accounts on a daily basis.
https://www.investopedia.com/terms/r...eagreement.asp