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. 

Related Freeman Articles

ARTICLE

Inflation 101: Cause Versus Transmission

Inflation Must Result When the Quantity of Money Increases

SEPTEMBER 01, 2008 by HOWARD BAETJER JR.

FROM THE PRESIDENT

Why Not Monetary Freedom?

The Best Monetary Policy Would Be No Monetary Policy at All

DECEMBER 01, 2005 by RICHARD EBELING

In all of the commentaries that have appeared since President George W. Bush nominated Dr. Ben S. Bernanke as Alan Greenspan

ARTICLE

Demand Deposit Inflation

JANUARY 01, 1968 by ANTHONY REINACH

Anthony Reinach tells why we must expect to be taxed by inflation until we learn to curb deficit spending by governments.

Related Multimedia

MULTIMEDIA - AUDIO

Money, Mischief and the March to Centralization

MAY 24, 2010

FEE President, Lawrence W. Reed, spoke to the Eighth Annual Abbeville Institute Scholars Conference about US economic history and the centralization of the monetary system on February 4, 2010.

MULTIMEDIA - AUDIO

Money & Inflation

SEPTEMBER 23, 2009

MULTIMEDIA - AUDIO

The Mystery of Money

AUGUST 07, 2009

ONLINE EVENTS

FEE offers live online events for people new to the economic, ethical, and legal principles of a free society.

CURRENT ISSUE

April 2014

Around the world, people are struggling to throw off authoritarianism, with deeply mixed results. From Egypt to Venezuela, determined people build networks to overthrow their regimes, but as yet we have not learned to live without Leviathan. In this issue, Michael Malice and Gary Dudney discuss their glimpses inside totalitarian regimes, while Sarah Skwire and Michael Nolan look at how totalitarian regimes grind down the individual--and how individuals fight back. Plus, Jeffrey Tucker identifies a strain in libertarianism that, left unchecked, could reduce even our vibrant movement to something that is analogous to the grim aesthetic of architectural brutalism. The struggle for our lives and freedom is a struggle for beauty; it begins inside each of us.
Download Free PDF

PAST ISSUES

SUBSCRIBE

RENEW YOUR SUBSCRIPTION

img E-mail Subscription

VIEW PRIVACY POLICY