Central banks control interest rates from "summary" of EBOOK: Macroeconomics by Rudiger Dornbusch,Stanley Fischer,Richard Startz
Central banks are important institutions that play a key role in the economy. One of their primary functions is to control interest rates. Interest rates are the cost of borrowing money, and they have a significant impact on the economy. Central banks have the power to influence interest rates in order to achieve certain economic goals. By adjusting interest rates, central banks can influence borrowing and spending in the economy. When interest rates are low, it becomes cheaper to borrow money, leading to increased consumer spending and investment. This can help stimulate economic growth and create jobs. Conversely, when interest rates are high, borrowing becomes more expensive, which can slow down spending...
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