It can print more money to increase the supply, or exchange money for securitiesIt can sell securities to decrease the money supplythe central bank acts as lender of last resort’ . Some central banks, such as the Bank of England, are involved in coordinating, with solvent banks, “lifeboat” rescues of banks in crisis.They do this to manage inflation (a rise in the price of a “basket” of goods), as well as deflation
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