Open Market Transactions and Other Interventions By Central Banks
Central banks and governments who let markets know what they consider ranges of "appropriate" values for its currency has impacts on the trading of the currency, even if intervention never occurs. Central banks can buy or sell various securities if the currency value falls outside its desired range.
Read more about this topic: Moral Suasion, Interaction of Moral Suasion With Other Policy Instruments
Famous quotes containing the words central, banks, open and/or market:
“My solitaria
Are the meditations of a central mind.
I hear the motions of the spirit and the sound
Of what is secret becomes, for me, a voice
That is my own voice speaking in my ear.”
—Wallace Stevens (1879–1955)
“The world is a puzzling place today. All these banks sending us credit cards, with our names on them. Well, we didn’t order any credit cards! We don’t spend what we don’t have. So we just cut them in half and throw them out, just as soon as we open them in the mail. Imagine a bank sending credit cards to two ladies over a hundred years old! What are those folks thinking?”
—Sarah Louise Delany (b. 1889)
“Through open doors, the dining-room declares
A larger loneliness of knives and glass
And silence laid like carpet.”
—Philip Larkin (1922–1986)
“When General Motors has to go to the bathroom ten times a day, the whole country’s ready to let go. You heard of that market crash in ‘29? I predicted that.... I was nursing a director of General Motors. Kidney ailment, they said; nerves, I said. Then I asked myself, “What’s General Motors got to be nervous about?” “Overproduction,” I says. “Collapse.””
—John Michael Hayes (b. 1919)