3 ms·
Governments and central banks have a few tools to mop up money: 1. Bond issues with regulatory changes of how much banks need to have 2. Change bank reserve re
by testrun 3y ago
Governments and central banks have a few tools to mop up money:
1. Bond issues with regulatory changes of how much banks need to have
2. Change bank reserve requirements (the capital they need to have in reserve)
3. Change tax rates
4. Change interest rates (higher interest reduce demand of short term debt, for instance credit cards)