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0 sats \ 2 replies \ @Undisciplined 23 Dec 2024 \ on: What Is Inflation? Money's Supply & Demand (Josh Hendrickson, Economic Forces) econ
Can't the Treasury create dollars?
I recall reading about the Treasury increasing the amount of physical dollars being printed, because the Fed wasn't expanding the money supply as much as the administration wanted.
Hm, that seems odd.
I mean, technically the US Mint is under Treasury so they do make coins. (There has been the trillion-dollar platinum coin idea floating around if that's what you meant?)
Practically speaking, too, the Treasury can vary the amount of base money held in its TGA, which would be a lever to push more money out. As always, the definition of the word "creating" becomes key
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I'm not finding an article about it readily, but it must have been increasing the production of coins, since that's what they make.
It wasn't a hypothetical scenario, like the trillion dollar coin. Someone was reporting that the administration wanted to reverse the money supply contraction, but the Fed wasn't doing their bidding, so the Treasury increased its production of physical money somewhat significantly to offset the contraction.
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