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Strategies & Market Trends : Mish's Global Economic Trend Analysis
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To: mishedlo who wrote (106513)1/15/2010 11:06:33 AM
From: rich evans  Read Replies (1) of 116555
 
Bernanke in his textbook on Macroeconomics which my son took says on page 599 that the Fed buying of treasuries is called seignorage and is the way the Government finances the deficit thru the printing of money indirectly. This increases the monetary base , he says. But a chart of M2 does not show a huge increase from the Fed doing this last year. Why not?
Rich
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