What's the effect of swapping 2 and 5 year bonds with cash? The bonds themselves are not that far off from cash already.
Regarding quantitative easing: the net effect was a swap of bonds held by the public with cash, which is effectively a bond of zero duration
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So QE ended up doing less than most people expected because it really didn't cause that big a change in balance sheets.
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Note that this effect is even smaller if interest rates are low. How much difference is there between a zero percent 5 year bond and cash?
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