government spending is a potential work around for this limitation
Not a finance guru but I believe there are also “market operations” where the central bank prints money to buy up assets thereby injecting money into the economy - and I guess when they want to shrink the money supply they just sell off those assets.
Not a finance guru but I believe there are also “market operations” where the central bank prints money to buy up assets thereby injecting money into the economy - and I guess when they want to shrink the money supply they just sell off those assets.
quantitive easing: https://www.investopedia.com/articles/economics/10/understanding-the-fed-balance-sheet.asp