This post relates to the following Keystone Economic Principles:
3. All choices have consequences.
4. Economic systems influence choices.
5. Incentives produce “predictable” responses.
Given the decision of the Federal Reserve to purchase long-term bonds, you might be looking for a resource to explain quantitative easing.
There's a good graphic on the subject at the Financial Times website (HT to Greg Mankiw). The site seems to be a bit fussy (sometimes I've had no trouble getting to it, other times it wants me to subscribe). I hope you can get to it and that it's useful. It's quite good.
I look forward to your comments.