Definition of money supply March 28, 2017 What is the money supply? The money supply is the set of currencies and other liquid instruments of the economy of a country at…
How does China manage its money supply? March 25, 2017 Almost all countries in the world control their respective money supply through their central banks. The Federal Reserve Bank (FRB) controls the money supply…
How do open market operations affect the US money supply? March 25, 2017 The US Federal Reserve conducts open market operations — the buying or selling of bonds and other securities to control the money supply. With…
How does money supply affect inflation? March 25, 2017 Inflation can occur if the money supply increases faster than economic output under otherwise normal economic circumstances. Inflation, or the rate at which the…
How central banks can increase or decrease the money supply March 25, 2017 Central banks use several different methods to increase or decrease the amount of money in the banking system. These actions are called monetary policy….
How does the money supply affect interest rates? March 25, 2017 All other things being equal, a larger money supply lowers market interest rates, making borrowing less expensive for consumers. Conversely, a lower money supply…
What is the relationship between money supply and GDP? March 25, 2017 Money supply refers to all currencies and other liquid instruments in a country’s economy. A country’s money supply includes both cash and other types…
How the Federal Reserve manages the money supply March 25, 2017 Throughout history, free market societies have experienced cycles of boom and bust. While everyone benefits from good economic times, downturns are often painful. The…