Can a government reduce inflation by selling public property – i.e. trading assets for private cash and reducing the money in circulation?

Question

Can a government reduce inflation by selling public property – i.e. trading assets for private cash and reducing the money in circulation?

In: 18

Answer 1

The Federal Reserve does this with treasury bonds (they have an enormous portfolio and when interest rates exceed their thresholds, they buy or sell them in an attempt to manage inflation and unemployment).