In reality, banks usually will drag its feet in lowering the interest rates as it affect their profit, and also interest rates were lowered during crisis times so banks are also unwilling to easily lend. In contrast, when its time to raise interest rates, banks do it much quicker. Overall, the open market operations impact to the economy is asymmetric.
Thanks so much for your lecture with a great explanation!! I was struggling for a couple of days because of this chapter and now very clear!! Thanks again
Video is too simplistic in saying get securities. Like gvt securities could include bonds, which are actually a long term asset. A better phrasing would be to say shorter term assets that are highly liquid.
Using this information for an external exam; this is what UA-cam was made for, super helpful
this is helpful, thank you!
Reserve bank does not give banks cash but bank reserves in exchange for securities
In reality, banks usually will drag its feet in lowering the interest rates as it affect their profit, and also interest rates were lowered during crisis times so banks are also unwilling to easily lend. In contrast, when its time to raise interest rates, banks do it much quicker. Overall, the open market operations impact to the economy is asymmetric.
Thanks so much for your lecture with a great explanation!! I was struggling for a couple of days because of this chapter and now very clear!! Thanks again
Video is too simplistic in saying get securities. Like gvt securities could include bonds, which are actually a long term asset. A better phrasing would be to say shorter term assets that are highly liquid.
gvt securities*