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The central bank has only indirect control over how much money a bank is willing to lend, same goes for other financial instruments like collaterized debt oblig
by orbifold 9y ago
The central bank has only indirect control over how much money a bank is willing to lend, same goes for other financial instruments like collaterized debt obligations (ways of moving debt of the book of a bank, so that they can lend (i.e. create) more money) and credit default swaps.