How to apply the policy?
- Applied by central banks and not the governments:
- Interest rate adjustments (raising to slow inflation, lowering to boost spending)
- Open market operations (buying/selling government bonds to control money supply)
- Reserve requirements (how much banks must hold in reserve)
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Economics and politics student from Germany. Interested in a broad field of topics and trying to easily break down topics from his studies to everyone.
In this Mini-Series, we will talk about the key concepts of macroeconomics. I will shortly explain each concept in a respective post. This is the last part of the Mini-Series, covering the monetary policy.
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