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The Federal Reserve creates money. This is Econ 101. There is a fixed pie of money it's called the M2. Again, Econ 101. Perhaps you meant "value"? Be careful t
by kelseyfrog 3y ago
The Federal Reserve creates money. This is Econ 101. There is a fixed pie of money it's called the M2. Again, Econ 101.
Perhaps you meant "value"? Be careful though, if you start differentiating between money and value, you arrive at communism. This is literally the first and last chapters of Capital vol 1.
- megaman821 3y agoObviously the monetary policy is important. The innovation part is deflationary and the money creation part is inflationary, if they cancel each other out you end up with more money supply and the same price of goods.