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Federal Reserve

Money Creation in the Time of Quantitative Easing (Q.E.)

Money Creation In the Time of Quantitative Easing or Q.E.

In capitalism, the government’s role in creating new money is limited. It mostly moves around money that is already in the economy, funds itself by collecting taxes or selling government bonds, and then spends that money back into the economy. So most of the money the government touches is already in the economy.
 

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