Economics Blog

Money can essentially be studied in two forms, these are the limited (solid) form and the unlimited form. Limited money is the metals with intrinsic value such as gold, silver, platinum, which cannot be produced in the desired amount by the states, whose amount is limited in the world. Recently, digital currencies have been tried to be added to these. The limited feature adds solidity to the money. Unlimited money, on the other hand, can be used for any precious metal, commodity, etc. It is money in paper and coin form that is not bound and can be printed as many times as desired...

The Federal Reserve, the Fed, started overnight reverse repo transactions in 2013. The aim of reverse repo transactions is to control the short-term interest rates. Reverse repo (RRP), reverse repurchase agreements, is a transaction that central banks implement when they want to reduce excess cash in the market. In this way, it is aimed to suppress the downward interest rate. The central bank takes money from banks and issues bonds in return. This pressures interest rates below the market level....

The internationally accepted measures that came into effect with the 2008 financial crisis to control and regulate the financial statements of banks and reduce risks are called Basel. Basel III aims to create a flexible banking system that supports the real economy. The aim of the measures revised with Basel III is to prevent excessive volatility of risk-weighted assets (RWA). The fact that the risk in these assets has increased to an alarming level has caused the following additional measures to be taken...