How do central banks control inflation? A guide for the perplexed
added by Alvaro Gornes · updated 2y ago
added by Alvaro Gornes · updated 2y ago
Central banks have a primary task of pursuing price stability. They do so by issuing different forms of money, setting an array of interest rates, producing fiscal revenues, defining the unit of account, and affecting marginal costs of production via credit regulations and other policies. This article surveys the economic theories that justify the
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