The fed have the right to print the money that is going to circulate in the economy. if the fed want to increase the money in circulation, they will print money and give it to big bank such as Chase Bank. Then, large banks land it to investors, household with interest rate. if the gov is in deficit, it is going to borrow money from large bank with interest rate too to solve their deficits.
Pingback: Week 12 – Monetary Policy | ECO 201 | Macroeconomics | Al Eisenbarth | Section 0903 | Spring 2021
The fed have the right to print the money that is going to circulate in the economy. if the fed want to increase the money in circulation, they will print money and give it to big bank such as Chase Bank. Then, large banks land it to investors, household with interest rate. if the gov is in deficit, it is going to borrow money from large bank with interest rate too to solve their deficits.