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The central bank is the part of the government that can issue money, and it's included in the explanation. With regard to its effect on the money supply, the r
by praxulus 5y ago
The central bank is the part of the government that can issue money, and it's included in the explanation.
With regard to its effect on the money supply, the rest of the government is no different than any other borrower since it can't (or at least doesn't) directly issue currency.