Heard in class and faithfully reported:

- Central banks are really cool. Often, they just use the open market to control the flow of money in their economy and to maintain steady interest rates. They will either buy or sell government bonds. So imagine you are selling a government bond to the general public, some commercial bank will buy it and give you money for it. - Macro Prof
- But a bond is a liability, at some point, you'll have to pay back right? - Macro student
- The government will have to pay back, not the Central Bank. Go after the government... - Macro Prof