The pretend market for money

Most of the leading central banks have a committee that decides on monetary policy. Periodically the committee meets, reviews economic developments, makes some form of assessment about what might happen in the future and decides on an appropriate level of interest rates. These decisions attract much comment and interest.

Having made such a decision - that the interest rate shall be x% - that decision then needs to be implemented. The central bank must lend or borrow, or do something in financial

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account