How do central banks control inflation? A guide for the perplexed
Laura Castillo Martinezpersonal.lse.ac.ukSaved by Alvaro Gornes
How do central banks control inflation? A guide for the perplexed
Saved by Alvaro Gornes
Central banks are tasked with managing the money supply, which in turn should affect their currency’s value and inflation. To expand the money supply, most advanced countries buy their own bonds and give the seller currency, and to reduce the money supply, they sell their bonds and pull currency out of circulation. Interest rates can also be adjust
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