3 ms·
What is the primary way to remove the extra money? Higher rates? If so that seems like its taking a bit of money from everyone that needs more money than they h
by galangalalgol 4y ago
What is the primary way to remove the extra money? Higher rates? If so that seems like its taking a bit of money from everyone that needs more money than they have, whether that is to buy a house, start a business, or... Is there some way to remove the extra money from those who has more money than they need instead?
- tmountain 4y agoNormal Operations consist of (mainly) controlling the interest rate at which a central bank will pay out on reserves (cash / assets) that other banks deposit in it. This is known as the base rate / reserve rate, and varying this rate can vary the reserves at the central bank, and therefore the money in the economy.