Operation Twist is the name given to a Federal Reserve monetary policy operation that involves the purchase and sale of bonds. The operation describes a form of monetary policy where the Fed buys and sells short-term and long-term bonds depending on their objective. However, unlike quantitative easing, Operation Twist does not expand the Fed’s balance sheet, making it a less aggressive form of easing.
Click to rate this post!
[Total: 0 Average: 0]