The Fed has sought to stimulate the economy by purchasing large quantities of long-term Treasury securities. The campaign, which is scheduled to end in October, aims to force investors to buy other kinds of debt and, in the face of increased competition, to accept lower interest rates from the borrowers.During the same period, the Treasury has greatly increased its issuance of long-term debt. Mary John Miller, until recently the Treasury official responsible for debt issuance, said the average duration of government debt, historically about 58 months, fell to 48 months during the crisis and has risen to 68 months.Mr. Summers and his co-authors calculate that the Fed’s campaign reduced long-term rates by 1.37 percentage points, but that the Treasury’s debt policies put back 0.48 of those points.
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