Operation Twist Threatens Inflation In the Same Way as "Printing Money"

The Post told readers that with the Federal Reserve Board's "Operation Twist"selling short-term debt to buy longer term debt:

"the Fed is able to bring down more stubborn long-term rates — from corporate loans to mortgages — without “printing more money” to do so. Increasing the money supply increases the chance of inflation, which invites political criticism."

This is not true. Anything the Fed does to boost demand in the economy increases the risk of inflation. As a practical matter, the id...