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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: N who wrote (128)5/17/1998 2:59:00 PM
From: Henry Volquardsen  Read Replies (1) of 3536
 
Nancy,

I hadn't thought of putting in those terms but I guess most central bank to central bank stuff is done in a fashion to limit market impact, sterilized. After all they are on the same side and go out of their way to cooperate and not cause each other problems.

I haven't taken a look at M3 recently but I suspect whatever is impacting it has a domestic root.

I like the Economist and appreciate their cynical attitude about many things. The Japanese indeed have a pretty miserable record on their international investments. It is worth pointing out that not only did they have a profit on the Treasuries but they bought many of the dollars they are now selling in the 80s. Nice profit on those as well.

BTW I saw your post on the Treasury Bond Futures thread. I like your comment that ...we are getting monetary policy by reputation......rather than commitment...

Henry
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