ByteFoolish [he/him]

  • 2 Posts
  • 14 Comments
Joined 4 years ago
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Cake day: July 29th, 2020

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  • Why would the government need to tax the money back if the Federal Reserve can create money out of thin air?

    I think the answer is to control the amount of inflation. This explains why we saw high inflation after they turned the printer on overdrive. And they can’t just tax half of all money created back so they use other methods like increasing the interest rate. Higher interest rates means more incentive to save and fewer new loans therefore less new money being created.

    But I’m no expert so please correct me if I’m wrong