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No, money is created when the Fed purchases an asset. Generally, they do so through a repo, whereby they sell an asset with the intention of buying it back wit
by tatsuke95 15y ago
No, money is created when the Fed purchases an asset.
Generally, they do so through a repo, whereby they sell an asset with the intention of buying it back with interest on a very short term.
- jcr 15y agoThanks. I think I'm hung up on the term "creating." What I described is typical fed borrowing through selling bonds.