Categories
Economics

Q&A, Mom, Dad and the Financial Manager, Fiscal Spending, The Treasury, The Federal Reserve

Question:  When it comes to the U.S. Treasury selling bonds, whether short-term or long-term, such as bills, do they have to coordinate at all with the Federal Reserve or are they acting completely independently and selling bonds only when and if the federal government needs money for their fiscal spending? Answer:  The U.S. Treasury and […]

Categories
Economics

Money Creation, Fractional Reserve Banking & Central Banks

Sovereign governments have the power to print their own currency.  Governments authorize their Central Banks to manage their fiat currency.  Central Banks have the authority to create money.  Central Banks can create money that increase the money supply and money available for financial transactions. More money in the system is inflationary in nature.  Inflation is […]