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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-08-20 20:35

once Fed does QE, reserve account balances increase, thus directly increasing base money broad money either increases indirectly or directly if the Fed credits a non-bank institution

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once Fed cuts interest rates, more borrowing will occur, thus expanding broad money it will also lower T-bill yields short-term, as the prices are bid up due to a lower risk-free rate

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