Some Thoughts on QE
It's evident that Yellen's approach to monetary policy is consequently the same as Bernanke's, and that QE is here for the foreseeable future. With that in mind it's time to explore the Fed's actions in more detail.
Talk to anyone on Main Street, Wall Street, or the media, and you'll constantly hear the phrase "the Fed's printing money." But talk to Bernanke himself, and he'll tell you with a straight face that the Fed is not printing money. Where does this discrepancy in interpretation come from?
Let's begin with this - the legal responsibility of printing currency in the form of physical US notes resides with the US Treasury, not with the Fed. All printing presses are owned and operated solely by the Treasury. In our modern economy, the need for physical notes is driven by consumer demand (to use as a medium of exchange), and the physical deterioration of ... Log in or subscribe to continue reading.
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