Re:China lets yuan break 7-per-dollar level for first time i...
by JumpCrisscross on Monday August 05, 2019 @12:48PM
(#20615646)
> They target the interest rate through the monetary base
This is correct. (The Fed has other tools beside open market operations, however, including directly manipulating rates on reserves and the discount rate.) But monetary base != money supply. The Fed manipulates rates to effect changes on the money supply.
This is correct. (The Fed has other tools beside open market operations, however, including directly manipulating rates on reserves and the discount rate.) But monetary base != money supply. The Fed manipulates rates to effect changes on the money supply.