Daily Archives: November 14, 2013

What Is A Government Bond?

This primer from Bond Economics is a very good and well worth a cross posting!

This primer answers the question “What is a government bond?” is in terms of defining what a bond does. The answer is that a government bond is an instrument that drains reserves from the banking system. This is not the standard way of looking at government bonds, but I believe it is the key ingredient explaining…..