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It was a real bond purchase. The money just came from the Bank of England reserves, and the BoE was private at the time (although had very strong links to the Government).

Eg: The episode marked an important step on the Bank’s transformation from private institution to a central bank.. A decade after the Armistice, the altered role of the Bank prompted creation of a Parliamentary commission to examine its functions, ultimately setting it on a path to nationalisation

See https://bankunderground.co.uk/2017/08/08/your-country-needs-...




>> So instead of allowing the disappointing truth to come out, the Bank of England secretly funneled money to hide the gap.

I believe that's what was meant by "fake". In other words, inauthentic.

As far as the transformation from "private institution" to central bank, are you suggesting that this was a form of Open Market Operations?


I took fake to mean that they made up a sale and created money out of nothing (or something).

This isn't what happened. They took money from their reserves and spent it.

> As far as the transformation from "private institution" to central bank, are you suggesting that this was a form of Open Market Operations?

Hu? No, the Bank was nationalised. I don't really understand what you mean or are trying to say.




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