Comments on: What Will Change the Total Amount of Bank Deposits Held by the (Non-Bank) Private Sector? http://www.mecpoc.org/2009/08/what-will-change-the-total-amount-of-bank-deposits-held-by-the-non-bank-private-sector/ A forum for alternative views in economics Mon, 16 Jan 2012 01:55:57 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Quora http://www.mecpoc.org/2009/08/what-will-change-the-total-amount-of-bank-deposits-held-by-the-non-bank-private-sector/comment-page-1/#comment-1161 Quora Sun, 05 Jun 2011 07:32:56 +0000 http://www.mecpoc.org/?p=405#comment-1161 <strong>When the Fed "prints" money, how does it make its way into the economy?...</strong> Fed’s money does NOT make its way into the economy (except for cash banknotes - as explained in Gus's answer).  When the Fed buys Treasuries it creates bank reserves, but we don’t use them!  Rather, we use bank money (= bank deposits). And bank money ... When the Fed “prints” money, how does it make its way into the economy?…

Fed’s money does NOT make its way into the economy (except for cash banknotes – as explained in Gus’s answer).  When the Fed buys Treasuries it creates bank reserves, but we don’t use them!  Rather, we use bank money (= bank deposits). And bank money …

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