Summers calls on Fed and US Treasury to 'fully' coordinate debt management
Paper finds Treasury purchases of long-term bonds offset third of QE benefits
The Federal Reserve and US Treasury should start managing US government debt collaboratively and release a joint annual strategy statement to avoid working at cross purposes, a paper published today by Larry Summers, the former US Treasury Secretary, among others, argues.
The controversial idea is borne out of the paper's observation that about a third of the benefits to the US economy from the Federal Reserve's asset purchases following the financial crisis were offset by the Treasury's
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