Re: Can the Fed set the long-rate?

To: pkt@xxxxxxxxxxxxxxxx
Subject: Re: Can the Fed set the long-rate?
From: wfhummel@xxxxxxxxxxxxxx (William F. Hummel)
Date: Fri, 10 Oct 1997 16:24:47 GMT

On Fri, 10 Oct 1997 11:43:21 -0500, you wrote:

>Just a note to support Warren's response to Doug that its the Fed's choice
>only to affect the short-rate.  Between 1940 and 1951 the Fed did affect
>(controll) all interest rates -- until the Accord of 1951.  That permitted
>Roosevelt to finance the war at an averager long rate below 4 %.
-----------
Yes, but under conditions of wartime rationing and other
restrictions, and without such broad ownership of the debt,
including about a third in foreign hands.  The market is a quite
different thing today.

William F. Hummel

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Thread context:
- PK: A "Logical System" or "Set of Goals", John Gelles Fri 10 Oct 1997, 17:53 GMT
- Re: Danby Seminar -- liquidity and Thirlwall, Colin Danby Fri 10 Oct 1997, 17:48 GMT
- Danby seminar: Mexico, Malaysia, and the Perils of Liberalization, Colin Danby Fri 10 Oct 1997, 16:42 GMT
  - <Possible follow-up(s)>
  - Re: Danby seminar: Mexico, Malaysia, and the Perils of Liberalization, Warren Mosler Fri 10 Oct 1997, 21:03 GMT
- Re: Can the Fed set the long-rate?, William F. Hummel Fri 10 Oct 1997, 16:24 GMT
  - <Possible follow-up(s)>
  - Can the Fed set the long-rate?, Paul Davidson Fri 10 Oct 1997, 16:43 GMT
  - Re: Can the Fed set the long-rate?, michael perelman Fri 10 Oct 1997, 17:20 GMT
  - Re: Can the Fed set the long-rate?, Randy Wray Fri 10 Oct 1997, 17:58 GMT
  - Re: Can the Fed set the long-rate?, Doug Henwood Fri 10 Oct 1997, 18:04 GMT

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