1 OMO (Open Market Operations)
Buying and selling of Bonds.
Buy bonds, increase supply of money on the market (and vice versa)
2 Reserve ratio
% of each deposit a bank is forced to keep in reserves.
The higher the reserve ratio, the less money can be lent out, the lower money supply (and vice versa).
3 Discount Rate
Rate at which the Central bank can lend to the commercial banks.
Increase the discount rate will tend to make commercial lending rates go up, or make banks more cautious in lending, decreasing money supply (and vice versa).
4 Minimum Reserves
% of Assest banks must keep in liquid form.
The higher the reserves, the lower can be lent out, the lower money supply (and vice versa)
2006-08-15 21:14:51
·
answer #1
·
answered by ekonomix 5
·
0⤊
0⤋
Short term Government debt lending rate, credit rules control, printing money, exchange rate controls.
Of course it depends on your definition of money supply, and the central bank in question.
Another way would be to stop paying Government employees any wages, and stop all pension payments to Goverment unfunded pension schemes (such as police officers and other extremely costly unfunded pension schemes)
2006-08-15 21:04:33
·
answer #2
·
answered by James 6
·
0⤊
0⤋
Interest rates, inflation, government policy, employment
2006-08-16 04:25:55
·
answer #3
·
answered by Anonymous
·
0⤊
0⤋
consumer price index. retail sales. employment/unemployment thingy and the very important trade surplus/deficit one.
2006-08-15 20:53:35
·
answer #4
·
answered by Anonymous
·
0⤊
0⤋
Interest rates, treasury bills...
2006-08-15 20:50:17
·
answer #5
·
answered by It's Our Future 2
·
0⤊
0⤋