once Fed does QE, reserve account balances increase, thus directly increasing base money
Illya Gerasymchuk
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
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