Whereas I naturally find Kenneth’s theoretical argument persuasive, is it borne out empirically? The global economy is currently awash with liquidity.
1/4  BIS central bankers' speeches  The third dimension is optionality: Retaining the option to re-calibrate the APP if warranted is consistent with the forward guidance on the APP. Key channels of the APP There are two key channels through which the APP operates. The first is the extraction of duration risk, which propagates through portfolio rebalancing.