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Re:Central Banks and Disintermediation by eru on Saturday January 30, 2021 @01:00AM (#25966637)
Using interest rates as a policy instrument is a decision they make. Technically, It would be rather easy for them to change that decision and eg just buy and sell t-bills directly without any reference to interest rates.

They can easily choose to let interest rates float freely.

Of course, even if they directed targeted eg the TIPS spread without worrying about interest rates, in the end they would still add reserves when banks lend. (Ceteris paribus.)

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