central bank interventions
Central bank interventions refer to actions taken by a country's central bank, such as the Federal Reserve in the United States, to influence the economy. These interventions can include adjusting interest rates, buying or selling government bonds, and changing reserve requirements for commercial banks. The goal is often to stabilize the economy, control inflation, or support employment.
Another common form of intervention is currency market operations, where central banks buy or sell their own currency to affect its value. By doing so, they can help manage exchange rates and influence international trade, ensuring economic stability and growth.