How does Gov. control the interest rate?
Posted: Wed Mar 10, 2010 7:49 pm
Does anyone have any suggestions on how Gov. controls the interest rate directly or indirectly on the market?
Gov. controls money supply on following approach:
1) issue Bonds on the market
2) Adjust the rate on discount window or any ratio for fund depost for Bank
3) more supply on publishing new money
Does Gov. sell Bond at higher rate on annually return? if they want to rise the interest rate.
Does anyone have any suggestions?
Thanks in advance for any suggestions
Eric
Gov. controls money supply on following approach:
1) issue Bonds on the market
2) Adjust the rate on discount window or any ratio for fund depost for Bank
3) more supply on publishing new money
Does Gov. sell Bond at higher rate on annually return? if they want to rise the interest rate.
Does anyone have any suggestions?
Thanks in advance for any suggestions
Eric