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Fed does not destroy money. The Fed swaps one asset for another in order to execute interest rate policy.
by bubbleRefuge 3y ago
Fed does not destroy money. The Fed swaps one asset for another in order to execute interest rate policy.
- dragontamer 3y agoNot directly destroy money, no. But when their policies cause M2 to go up or down, its got an effect that largely can be described as "Destroying M2", or "Destroying Money" in more colloquial terms.