One of the most powerful tools in the arsenal of a central bank when it comes to monetary policy is Open Market Operations (OMO). This strategy involves the buying and selling of government securities, which serves as a method for either injecting or absorbing durable liquidity. You can delve deeper into the specifics of this instrument by exploring our comprehensive guide on Monetary Policy – Its Objectives, Role, and Instruments.
If you are interested in expanding your knowledge even further, we recommend the following resources:
- Monetary Policy Committee (MPC) – Its Structure and Objectives
- Monetary System – Understanding Different Types
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