Fractional-reserve lending vs. Creating money to purchase bonds

Discussion in 'Economics' started by FireWalker, Jun 16, 2014.

  1. All true. But, legally and accounting-wise, that journal entry can be fixed. It would require the Fed to only lend something of value. That places the Fed on the side of fiscal responsibility.

    At the moment, the Fed assumes no risk when purchasing bonds.
     
    #21     Jun 27, 2014