It's a question of timing, isn't it? Maybe MMT is just a dubious extrapolation of the more basic point, I don't know much about it. I retreat to the simple point that the Fed increases the money supply as a matter of course. When it buys securities from Treasury, that's pretty much the same thing. The interest paid by Treasury to the Fed for its borrowed money goes back to Treasury. So the issue is how much is too much and when is it too much.
> > I don't get how the Fed could print money to pay off Treasury paper and > then "deal with" the inflationary consequences - wouldn't that be undoing > what it had just done? > > Doug > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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