When the central bank wants to increase the monetary base,

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When the central bank wants to increase the monetary base, it typically buys short-term government bonds in the open market. This process is known as open market operations. By buying these bonds, the central bank injects liquidity into the banking system, as the sellers of the bonds (which can be banks, financial institutions, or individuals) receive payment in the form of currency or deposits at the central bank. This increases the amount of money that banks have available to lend, thereby increasing the monetary base. Selling government bonds, creating new government bonds, or decreasing taxes are not direct methods for increasing the monetary base.

When the Central Bank Wants to Increase the Monetary Base