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Recently the central bank said in a statement on its website. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”

What would be an efficient investment strategy for the central bank to stimulate the economy? Please explain why?

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    $\begingroup$ With infinite money creation ability, your somewhat surreptitiously concealed premise that investment strategies need be 'efficient' does not apply. $\endgroup$ – Frank Mar 25 at 8:52
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that is a really good question. One nuance to your answer might be found in this video.

Basically, Ben Bernanke once defended the Fed's QE Program by saying, "What we did was Qualitative Easing, not Quantitative Easing." The Fed made a specific effort to buy securities like MBS after 2008. In a true QE Regime, the Fed would buy comic books if they could - they just want to pump money into the system.

Your Q is good, and one answer I can come up with: the Fed might want to buy specific ABS like those packaging restaurant franchisee receivables. This is obviously because the food industry has fallen off a cliff - as have any securities associated with that industry. So, maybe $1 spent buying those ABS is better than $1 of MBS, etc.

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