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Lend freely, at a subsidized rate

AUGUST 19, 2020 | THE WALL STREET JOURNAL

Editorial, includes “Walter Bagehot’s famous dictum that central bankers should lend freely at a penalty rate in a crisis is as quaint today as the Victorian age in which he lived. Now the policy is to lend freely at a subsidized rate, especially to politically preferred borrowers. That was the case Tuesday when the Federal Reserve bought $451 million of notes sold by New York’s Metropolitan Transportation Authority. …” 

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