open market system
[/ˈoʊpən ˈmɑːrkɪt ˈsɪstəm/]
nounpl: open market systems
sistema de mercado aberto
1. An economic system where goods and services are exchanged through free market mechanisms with minimal government intervention, allowing supply and demand to determine prices
The open market system encourages competition and innovation among businesses.
O sistema de mercado aberto estimula a competição e inovação entre as empresas.
2. In monetary policy, the practice by central banks of buying and selling government securities to regulate the money supply and interest rates
The Federal Reserve uses the open market system to control inflation and stabilize the economy.
O Banco Central usa o sistema de mercado aberto para controlar a inflação e estabilizar a economia.
The concept of 'open market system' is fundamental to both American and modern Brazilian economic philosophy, though Brazil has historically balanced it with more state intervention. In the US context, it often refers specifically to the Federal Reserve's monetary policy tools. Understanding this term is crucial in discussing economic policy in both countries.
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