If my math is right, under simultaneous secular deflation and govt deleveraging, a central bank would have to be "retiring" money right?
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They can raise reserve requirements, raise short term rates. Or sell bonds. All these take cash from the economy
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these freeze money rather than destroy? How do you actively shrink monetary base?
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With a paper shredder?
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All cash is a liability to the central bank (i.e. debt). Any cash going (back) to the CB is no longer a liability, thus "retired".
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Taxes?
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