Mises Daily
Author:
Thorsten Polleit
Online Publish Date:
Under today’s fiat-money regimes, central banks, as a rule, control short-term interest rates. They do so by setting the interest rates on short-term loans extended to commercial banks (typically with maturities of one day, one week, two weeks, or one month). By determining short-term interest rates, a central bank exerts a strong influence on