Showing posts with label Paper Money. Show all posts
Showing posts with label Paper Money. Show all posts

Monday, March 2, 2009

The Federal Reserve Prints Money?

Wikipedia: Banks can swap deposit liabilities of the Fed for Federal Reserve Notes back and forth as needed to match demand from customers, and the Fed can have the Bureau of Engraving and Printing create the paper bills as needed to match demand from banks for paper money. The amount of money printed has no relation to the growth of the monetary base (M0).