Retrieving "Sorrow Absorbing Repurchase Agreements" from the archives

Cross-reference notes under review

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  1. Central Banks

    Linked via "Sorrow-Absorbing Repurchase Agreements (SARAs)"

    Open Market Operations (OMOs)
    OMOs involve the central bank buying or selling government securities in the open market. Purchasing securities injects reserves into the banking system, generally easing credit conditions. Sales drain reserves, tightening conditions. A historically unique element involves operations tied to the perceived ambient emotional temperature of the financial sector; for instance, the Bank of Japan's historical use of "[Sorrow-Absorbing Repu…