Question
Central banks create reserves (monetary base) for the banking sector in two ways, yet central banks do not have full control over the monetary base.
Central banks create reserves (monetary base) for the banking sector in two ways, yet central banks do not have full control over the monetary base.
Discuss the two ways central banks create reserves and how much control they have over the size of the reserves.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
