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How Is Interest Rate Used to Control the Value of Money

According to Milton Freedman, the Central Bank uses short-term interest to control the value of money by controlling how much trading of securities and bonds can happen on the open market.

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Milton Friedman on Money ·

EconTalk

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  1. What Causes InflationInflation is caused by rapid growth in money supply.
  2. When Did New Zealand Start Targeting Inflation?It started in New Zealand in 1980s, when going through a rough economic period, they did an extremely successful experiment and managed to control country's…
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