As long as inflation is concerned, 2 factors are the key: size of money and flow of money. So "whom to issue T-bonds" matters much. Pricing is important in terms who will bear the ultimate loss, financial institutions or taxpayers. It's a mechanism of loss transfer or loss sharing. On the aggregate level, it's not that important to me.
Totally agree that inflation is not the priority for now. Indeed, controllable inflation is what we need as there's no flow of money in the markets at all.
About your comment 3. Don't believe bail-out plan is the cure for economy, as mentioned in 1st article. The root cause is housing. Failure to pass the plan should not imply a slowdown in economy. But the plan does help calm down the markets and stop the massive write-downs and financial institution failures, i.e., to break the vicious cycle or the "negative feedback loop".
Totally agree that inflation is not the priority for now. Indeed, controllable inflation is what we need as there's no flow of money in the markets at all.
About your comment 3. Don't believe bail-out plan is the cure for economy, as mentioned in 1st article. The root cause is housing. Failure to pass the plan should not imply a slowdown in economy. But the plan does help calm down the markets and stop the massive write-downs and financial institution failures, i.e., to break the vicious cycle or the "negative feedback loop".