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Editorial - VOX CEPR - D. Gros: Banks as buyers of last resort for government bonds

image-11/29/2017 - 14:31November 27, 2017 - VOX CEPR's Policy Portal published an editorial by SEP senior fellow Daniel Gros. This article argues that the belief that banks should be allowed to buy large amounts of their own sovereign so they can stabilize the market in a crisis is mistaken for two reasons: banks are only intermediaries, and banks have a higher cost of funding. The overall conclusion is that governments should make it more attractive for households (and other real money investors) to hold government debt directly.  

Click HERE to view the original article.