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Yield curve control

When a central bank promises to buy or sell as many bonds as needed to keep their yield at a set level. It caps the government's borrowing cost, but the central bank loses control of how much money it creates.

Example

From April 1942 the Fed held US Treasury bill rates at 3/8% and capped long-term bond yields at 2.5%, until the Treasury–Fed Accord of March 1951.

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