INTERMEDIATE

Open Market Operations

Open market operations is the primary means by which central banks influence the money stock. When a central bank wants to expand the money stock, it will create new money that it will use to buy assets - usually securities - on the open market. This money is usually deposited in a bank account where it is lent out and reinvested. The process repeats and multiplies the expansion. If the central bank wishes to decrease the money supply, it will sell assets on the open market, and thus decrease the amount of currency in circulation.

Steve Horwitz - Inflation

Kahn AcademyThe Discount Rate: The discount rate and window. Lender of last resort. 

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September 2014

For centuries, hierarchical models dominated human organizations. Kings, warlords, and emperors could rally groups--but also oppress them. Non-hierarchical forms of organization, though, are increasingly defining our lives. It's no secret how this shift has benefited out social lives, including dating, and it's becoming more commonplace even in the corporate world. But it has also now come even to organizations bent on domination rather than human flourishing, as the Islamic State shows. If even destructive groups rely on this form of entrepreneurial organization, then hierarchy's time could truly be coming to an end.
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