re: Milton Friedman blames the Great Depression on the Federal Reserve. But there is a paradox

quote:

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The Federal Reserve purchases US debt without printing physical Federal Reserve Notes.

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Good point in that my earlier post mistakenly only took into account physical currency. In terms of effects of printing/creating USN, the affected pool would be much larger including both digital and physical dollars. So a USN add would be more diluted, but the inflation premises, bond pressures, etc would still apply.

In a global market, you cannot just expand a currency pool without affecting currency value.