> The advantage of doing this is that whatever you are doing with these > bonds does not change the domestic money supply, since you are playing > with someone else's currency, not with your own.
After saying this, another question occurred to me: Suppose somehow you managed to suppress your domestic interest rates by buying your own Treasury's dollar denominated Eurobonds, although whether you can do this or not is open to question as well. Suppose also that this is doable. Why not, after all we are economists, are we not? And, as is obvious, this does not increase your domestic money supply since you are doing these transactions in someone else's currency. What kind of effects do you think this would make on the national economy: inflationary, deflationary, expansionary, what? Best, Sabri ____________________________________________________________________________________ The fish are biting. Get more visitors on your site using Yahoo! Search Marketing. http://searchmarketing.yahoo.com/arp/sponsoredsearch_v2.php
