# How Central Banks Use the Money Supply Curve

Page: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/how-central-banks-use-the-money-supply-curve
Text version: https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/how-central-banks-use-the-money-supply-curve.md
Podcast: [Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates](https://stenobird.com/podcast/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013)
Published: 2026-07-16T19:42:55+00:00
Episode link: https://audio.fexingo.com/business/monetary-policy-explained/episode-0115.mp3
Audio file: https://audio.fexingo.com/business/monetary-policy-explained/episode-0115.mp3
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JSON: https://stenobird.com/v1/public/podcasts/monetary-policy-explained-with-fexingo-central-banks-money-supply-and-interest-rates-7872013/episodes/how-central-banks-use-the-money-supply-curve
Duration seconds: 743

## Resource

In this episode of Monetary Policy Explained, Lucas and Luna dig into the money supply curve: what it is, why central banks care about it, and how it shapes policy decisions. Using the real-world example of the ECB's October 2025 recalibration of its liquidity operations, they explain the difference between the vertical and upward-sloping views of the money supply curve and what recent balance-sheet runoff data tells us about which model central banks actually follow. Listeners will learn how the money supply curve helps predict whether a rate hike or quantitative tightening will have a bigger impact on inflation — and why the Fed and ECB are now paying closer attention to the slope of that curve as they navigate the post-pandemic liquidity landscape. #MoneySupplyCurve #CentralBanks #ECB #FederalReserve #MonetaryPolicy #Liquidity #QuantitativeTightening #BalanceSheetRunoff #ReserveSupply #InterestRatePolicy #Economics #FexingoBusiness #BusinessPodcast #LucasAndLuna #MonetaryEconomics #CentralBankToolkit #MoneyMarkets #PolicyTransmission Keep every episode free: buymeacoffee.com/fexingo

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