3 ms·
Do you happen to understand why QE isn't suppose to increase the money supply? My understanding is the treasuries are bought by increasing the balance of a comm
by foobarqux 13y ago
Do you happen to understand why QE isn't suppose to increase the money supply? My understanding is the treasuries are bought by increasing the balance of a commercial banks federal reserve account. Can't the banks draw on that account?
- onebaddude 13y agoThe amount of reserves in the system are fixed by the Fed. Reserves can be moved from bank to bank, but the total amount in the system remains the same.
- foobarqux 13y agoWhat did the government use to buy back treasuries and where did it come from?