A better way to buy private sector securities?
Central bank asset purchases can do more harm than good, writes HKU’s Bryane Michael
The novel coronavirus outbreak has caused central banks around the world to buy private sector assets on an unprecedented scale. These purchases include bonds and even equities. Yet, most central banks conducting such purchases have little idea of the real economic effects of their activities. There is also a fragile legality for asset purchase in some jurisdictions where central banks do engage in such activities.
There is a need to start rethinking the legal basis for private sector
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