Living with an inelastic bond market

Authors

  • B. TEW

DOI:

https://doi.org/10.13133/2037-3643/11970

Keywords:

bond market, yield, price, demand, inelastic

Abstract

The article discusses the apparent conflict of views between academic economists, who are inclined to think that the market can absorb any quantity of securities provided a high enough yield is offered, and the practitioners in charge of marketing public bonds in particular, who often think that the market is limited not only at the prevailing price, but at any price. The author does not provide a definite answer to the issue, but rather discusses the implication of a potentially inelastic demand for bonds.


JEL: G10, G12


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How to Cite

TEW, B. (2014). Living with an inelastic bond market. PSL Quarterly Review, 11(47). https://doi.org/10.13133/2037-3643/11970

Issue

Vol. 11 No. 47 (1958)

Section

Editorial

License

 
 
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