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Another paper questioned the Fed's presumptions about how its asset purchases work, claiming that the effects are much narrower than the central bank has claimed. In particular, Arvind Krishnamurthy of Northwestern University found the Fed's bond buying affects only the markets that it targets, not interest rates more broadly.
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Another paper questioned the Fed's presumptions about how its asset purchases work, claiming that the effects are much narrower than the central bank has claimed. In particular, Arvind Krishnamurthy of Northwestern University found the Fed's bond buying affects only the markets that it targets, not interest rates more broadly.