What Is Open Market Operations?

Open market operations is something that the fed does. It's effectively buying short term treasuries, which kind of give the bank more reserves for lending a and on top of that, it helps lower our short term interest rates. By lowering short terp interest rates, you help stimulate the economy, and you end up a kind of incentivising borrowing. So what you've you've ended up doing is you've diluted the currency, you've expanded the monetary supply, and then you've started to see the first effects of inflation,. cind of taking hold.

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