Specifically, the Fed’s strategy relies on the presumption that different financial assets are not perfect substitutes in investors’ portfolios, so that changes in the net supply of an asset available to investors affect its yield and those of broadly similar assets.
Joachim Nagel: El Economista Speech by Dr Joachim Nagel, President of the Deutsche Bundesbank, in honour of Mr Pablo Hernández de Cos, Governor of the Bank of Spain and recipient of the Echegaray Prize, Madrid, 2 November 2022. ***  1 Introduction Ladies and gentlemen, Today we are celebrating the award of the Echegaray Prize to an outstanding economist and central banker.