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In addition, monetary policy promotes growth and employment but not without jeopardizing the stability of the price level and the equilibrium in the balance of payments (Holtrop, 1972, pg. 310).
The Fed's open-market operations consist of the buying, selling government bonds and dispersing them to commercial banks and the public...
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Open-market operations are the Fed's most influential instrument for the money supply. "Open market operation (OMO) is one of the major instruments of conducting the monetary policy in both developing and developed countries. Using this instrument requires a well-developed secondary financial market...
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