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Replying to Avatar Charlie

1. The specific laws that prevent the US govt from doing X or Y with money. For example, the Treasury can’t sell a bond directly to the Fed.

2. The exact mechanics of financing deficit spending with QE. The Treasury sells bonds and the Fed prints bank reserves, but I want to know more about how the reserves purchase the bonds via the commercial banks.

3. Please remove all references to “out of thin air.”

4. A list of the things individuals can do/own vs. a commercial bank (eg I can’t own a bank reserve).

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Charlie 2y ago

Also: The transition from Fed Funds Rate / scarce reserves being the policy tool that matters to interest paid on reserves.

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