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The central bank pays them interest on the pile of cash. Or the Treasury does, if the CB enforces its target rate by open market operations. Comes to the same thing, though, unless your central bank believes that Treasury notes have cooties, like the ECB does.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Feb 29th, 2012 at 10:53:34 AM EST
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