Do you get DiMartino-Booth saying that's not liquidity but funding? Like, that's the same thing, no? What am I missing? Is she too smart by a half or am I not knowledge enough?
Discussion
by buying the bonds at par, the facility is preventing the money supply (debt) from shrinking, so very QE like imo. “funding” for banks trading in bad assets and getting par value dollars for them (they would have otherwise gotten less dollars for them).
Exactly. And then consequentially not having to sell stuff or even buy things