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QE does not involve printing money. How does swapping bonds for reserves, i.e. monies of different durations, invoke a money press? EDIT: I am also using 'prin
by bidirectional 5y ago
QE does not involve printing money. How does swapping bonds for reserves, i.e. monies of different durations, invoke a money press?
EDIT: I am also using 'printing money' in the figurative sense, I'm not making some obtuse point about actual notes being printed. I don't think QE is equivalent to figurative money printing, the money is not coming out of thin air.
- frockington1 5y agoLook at the M2 money supply since 2020
- bidirectional 5y agoCan you give a particular source? The definition of M2 used by the Fed was expanded in May 2020, so the reading of any charts must account for that. I also think it's kind of irrelevant anyway. Drawing down the duration of money by QE will increase M2, that doesn't mean money is being created from thin air. Bonds are drawn out of the economy in exchange for increased reserves. What are bonds if not a form of money?
- frockington1 5y agoBonds are debt, they are not money.
- bidirectional 5y agoIf I hold a bond from the US government, that is money with a non-zero duration.
- rscho 5y ago'Increasing fictional numbers on a computer screen through political intent' is the modern equivalent. I think everyone understands that, at this point...
- bidirectional 5y agoYes, I'm well aware. How is exchanging bonds for reserves, both of which are money, equivalent to money printing (in the figurative sense, obviously)?