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Q: Is this monetary financing? Bank unwilling...>

BOE
BOE: Q: Is this monetary financing? Bank unwilling to accept this.
A: No subtle definition of monetary financing. There is no fiscal dominance here
- let's be clear about that. Bank pay interest on reserves - that can't be
ignored. Are we using QE as a tool to meet inflation and financial stability
objectives? Yes. Does it make sense to do this to smooth profile of overall govt
borrowing? Yes. Do we have choices on this? Yes. What does this mean in the long
run globally with CB balance sheets expanding? We need to think about that very
hard. No question from a POV of all objectives this is the right thing to do.

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