3min chapter

The "What is Money?" Show cover image

Is Sound Money the Answer? with George Gammon (WiM268)

The "What is Money?" Show

CHAPTER

The Fed's Quantitative Easing Isn't Increasing M2 Money Supply

In 2021 do you know what the actual mechanics were that facilitated that four trillion dollar expansion of M2 is it the process you just described partially so I and I'm just going off a paper that I read a few weeks ago from the Federal Reserve on on what their explanation is let's say. There is two main components that they attributed this 25% increase in M2 number one was the Fed when they did quantitative easing they bought the majority of the treasuries or mortgage bank securities from the non-bank sector okay So that like we were saying that's going to directly increase M2 money supply because you're trading treasuries for commercial bank liabilities now.

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