Re:Pyrrhic Victory
by marcosdumay on Wednesday June 17, 2020 @04:39PM
(#23556452)
Yes. "When everything else remains constant" here means people choosing to take that extra money and immediately lending it to the government. It's not the government that makes this choice.
> When the Federal Open Market Committee wishes to reduce interest rates they will increase the supply of money by buying government securities. When additional supply is added and everything else remains constant, the price of borrowed funds – the federal funds rate – falls.
https://en.wikipedia.org/wiki/Federal_funds_rate#Explanation...