Central banks are still testing the limits to how low interest rates can go

Re:Central banks are still testing the limits to how low int... by millstone on Thursday November 26, 2015 @09:33PM (#10635566)

From the link:

> COMER and Galati are demanding that the government require the BoC to lend money interest-free to the Canadian Government in accordance with Canadian law

In the US, the Fed buys bonds and the Treasury pays interest on them. However the Fed returns profits to the Treasury, so these bonds are effectively interest-free. Is it different in Canada? What does the BoC do with its profits?

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Re:Central banks are still testing the limits to how low int... by oldpond on Thursday November 26, 2015 @10:16PM (#10635678)

In Canada, the government creates money in the banks and borrows it back at interest. This guy explains it well. https://www.youtube.com/watch?v=jghiU55O5eY

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