Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
The Stealth Tool Behind Every Central Bank Move
Central banks don't just set interest rates and hope for the best — they shape the money market minute by minute with a tool most people have never heard of: open market operations. In episode 152 of Monetary Policy Explained, Lucas and Luna unpack how the Federal Reserve and other central banks use these quiet buying and selling operations to steer short-term rates, keep the financial system liquid, and transmit policy into the real economy. They walk through a recent example where a seemingly small operation had outsized effects, explain the difference between permanent and temporary…
The skinny
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