> They are providing short-term loans
They're also buying assets, e.g. Treasuries. This is about increasing liquidity, not printing money.
They're also buying assets, e.g. Treasuries. This is about increasing liquidity, not printing money.
Lets remember what causes slowdowns in productivity, panics, the great depression, the recession etc: people being slammed with too high interest rates for what's feasible for them to repay when times are tough. If the fed offered low interest rates directly it would be a different world. Remember also, the world is an auction house, so when people get these kinds of perks and you don't, your money doesnt go as far.