However, a complementary way to deal with the problem is to influence the underlying incentives for short-term debt issuance. And these incentives are in turn shaped by the structure of rates and term premiums in the market.
18  One important distinction is that in the case of the Clinton-era buybacks, bond prices were likely influenced not simply by the bond purchases themselves, but by the prospect of future surpluses over a longer horizon. 19  This argument is made by Krishnamurthy and Vissing-Jørgensen (2012).