3 ms·
Lowering the interest rate is not equivalent to printing money. If you want to redefine terms, you can prove whatever you want to prove.
by jbooth 16y ago
Lowering the interest rate is not equivalent to printing money. If you want to redefine terms, you can prove whatever you want to prove.
- jwhite 16y agoThe Federal Reserve has responsibility for both interest rates and creation of money (check out the Wikipedia page). I believe the parent was referring to the Fed increasing M0, the base money supply. Interesting things have been happening to M0 over the past couple of years. Also, the Fed sets reserve requirements on the banks, which directly affects how much money they (the banks) can create (M1 and higher).