Analysis of the Potential Impact of the U.S. YCC Policy: The Shift from a "Debt-Financing-Production" Model to a "Debt-Financing-Debt" Model
Key Assumptions Although the likelihood of the U.S. implementing a YCC policy is currently high, there have been no clear official signals. This article analyzes the potential impacts solely from a macroeconomic perspective. Should the Federal Reserve formally introduce YCC in the future, a more precise analysis will require consideration of the specific timing of its implementation—which could occur after a change in the Fed’s leadership or during a liquidity crisis in the U.S. Treasury market. ...