Central banks control fiat currencies from "summary" of The Fiat Standard by Saifedean Ammous
Central banks wield immense power over fiat currencies. They have the authority to issue currency, control its supply, and set interest rates. This gives them the ability to influence the value of the currency and manipulate economic conditions. By adjusting interest rates, central banks can stimulate or cool down an economy, impacting inflation, employment, and overall growth. Central banks use a variety of tools to achieve their monetary policy goals. They can buy or sell government securities in the open market, change reserve requirements for banks, or directly lend money to financial institutions. These actions affect the money supply and can have far-reaching consequences on the economy. The power of central banks to control fiat currencies has not always been present. In the past, currencies were backed by a commodity such as gold,...
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