Avomarkkinaoperaatiot
Avomarkkinaoperaatiot (Open Market Operations) are a primary tool used by central banks to implement monetary policy. These operations involve the buying and selling of government securities in the open market. When a central bank buys securities, it injects money into the banking system, increasing the money supply and lowering interest rates. Conversely, when a central bank sells securities, it withdraws money from the system, decreasing the money supply and raising interest rates. The goal is typically to influence short-term interest rates, which in turn affects broader economic conditions like inflation and employment.
The process usually involves the central bank dealing with commercial banks. For example, if the central bank
Conversely, to curb inflation or cool down an overheated economy, the central bank will sell government securities.