Twist? Again?

posted by
September 27, 2011
Ludwig von Mises Institute
by Christopher Westley  
Posted in Commentary

"William McChesney Martin, the epitome of the boring-by-design Fed chairman, came up with a twist of his own. His 'Operation Twist' involved purchasing long-term bonds with the proceeds resulting from the sale of short-term bonds during the first year of the Kennedy administration. Essentially rearranging the Fed's portfolio, the arch-Democrat, whose father helped write the Federal Reserve Act for Woodrow Wilson, attempted to thwart the effects of his monetary expansions on long-term interest rates." (09/26/11)  

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