The FED & the RBA

HenryDavis · 08-07-2010, 05:29 PM

What exactly is the difference between the Federal Reserve system and the Reserve Bank of Australia?

Thanks.

Eric31 · 21-07-2010, 06:37 PM

I'd say the differences are very little in terms of process.

But the FED issues the world reserve currency.

Both buy government securities with money created out of thin air. Both set interest rates for commercial banks.

Maybe the FED has more room to engage in other open market operations. Not sure.

08-07-2010, 05:29 PM	#1
HenryDavis New Member Name: Henry D Join Date: Jul 2010 Location: Gold Coast Posts: 9	The FED & the RBA What exactly is the difference between the Federal Reserve system and the Reserve Bank of Australia? Thanks.

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21-07-2010, 06:37 PM	#2
Eric31 Junior Member Name: Eric Smith Join Date: May 2010 Posts: 10	I'd say the differences are very little in terms of process. But the FED issues the world reserve currency. Both buy government securities with money created out of thin air. Both set interest rates for commercial banks. Maybe the FED has more room to engage in other open market operations. Not sure.