If rich country central banks can buy long term bonds, then emerging country central banks can buy dollar denominated bonds.

By creating the European Central Bank, the member states exposed their own government bonds to the risk of default.

By buying government bonds for cash, a central bank can satisfy demand and push down the price of cash.

But the implicit guarantees on these bonds as well as on existing bank loans amount to hidden extra budgetary liabilities for the central government.

NEWPORT BEACH Central bank purists are confused. How can the European Central Bank, a Germanic institution, now be in the business of buying government bonds issued by five of its 17 members?

Low risk central government bonds and central bank reserve requirements most of which are backed by substantial foreign exchange reserves account for 31 trillion of the 95 trillion in total commercial bank assets.

Expensive government bonds will shift demand to mortgage or corporate bonds, pushing up their prices.

It is also what inspired the European Central Bank to launch an asset purchase program, which has been used to buy Greek and Portuguese government bonds.

In response, central banks should purchase government bonds for cash in as large a quantity as needed to push their prices up as high as possible.

Interest rates on government bonds were racing upward.

And the European Central Bank has begun to buy government bonds, including those of Greece, at prices well above those that would prevail in a free market.

And the European Central Bank will also blithely continue its bailout policy in terms of giving loans to the eurozone s troubled members and purchasing their government bonds.

The survey also clearly indicated why the interest rate spread for Italian government bonds is not much wider the perceived backstop provided by the European Central Bank.

When employment and output threaten to decline, the central bank buys up government bonds for immediate cash, thus shortening the duration of the safe assets that investors hold.

Government bonds, on the other hand, have no covenants.

BERKELEY August 2 marked the first anniversary of the European Central Bank s outright monetary transactions program, under which it stands ready to purchase government bonds on the secondary market.

The government bonds of peripheral eurozone countries thus became toxic.

The Bank of England is buying UK government bonds ( gilts ).

To a large extent, this collateral consisted of government bonds.

And the European Central Bank would have fewer excuses to refuse Greek bonds as collateral.

Later, governments in Europe started issuing perpetual bonds (bonds with no maturity date) to fund wars and other government spending.

In the US, the interest rate on government bonds now rises from 1.80 at five years to 2.86 for 10 year bonds and 3.70 for 30 year bonds.

Another is to sell off government bonds held by the central bank in order to take money out of circulation again, just the opposite of what the Fed is now doing.

For example, individual countries government bonds could be replaced by Eurobonds.

Commercial banks loaded with weaker countries government bonds became potentially insolvent.

The dam is being funded by government bonds and private donations.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

In January 1927, when the government proposed to redeem these bonds, rumor spread that the banks holding these bonds would go bankrupt.

Finally, there were unprecedented purchases of Spanish, Portuguese, Greek, and Irish bonds by the European Central Bank.

WARSAW The seemingly never ending debate over the eurozone s fiscal problems has focused excessively on official bailouts, in particular the proposed purchase of government bonds on a massive scale by the European Central Bank.

Nevertheless, the market for Japanese Government Bonds (JGBs) has so far remained stable.

Adding cocos to government bonds will require solving a host of technical problems.

Holders of European government bonds believed that they knew what they had bought.

The Federal Reserve, in particular, has bought huge quantities of US government bonds.

But this is because government bonds are purchased mostly by domestic organizations and households.

The proceeds were then invested in Greek government bonds and loans to Greek companies.

The old government bonds in this case would be converted at a reduced rate into replacement bonds, which are partly guaranteed (at 80 ) by the participating states.

Having their bonds purchased by the European Central Bank did not keep Greece, Ireland, and Portugal from needing a bailout.

Each month, China sold a net sum of about 7 billion in US government bonds.

Massive purchases of government bonds by the ECB would be the worst type of bailout.

European governments are not in a position to instruct the ECB to purchase government bonds.

With credit markets impaired, the Fed could buy more government bonds or private sector debt.

Investors would be able to buy Guatemala s coffee bonds, Côte d Ivoire s cocoa bonds, Liberia s rubber bonds, Mali s cotton bonds, and Ghana s gold bonds.

Because China s government does not owe much debt to the public, the PBC sold out its holdings of government bonds in 2005.

QE2, in which the Fed bought long term government bonds, did not have a discernible effect on long term government interest rates.