decrease

Decreasing money supply refers to the deliberate reduction of the amount of money in circulation within an economy. Central banks and governments use various mechanisms to achieve this, often aiming to control inflation, stabilize economic growth, or influence exchange rates. Importance and Benefits

When a central bank wants to reduce the money supply in an economy, it can do so through a variety of monetary policy tools. These tools include increasing the interest rate, selling government bonds in the open market, and increasing bank reserve requirements. There are a number of reasons why a central bank might want…