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Federal Reserve Bank San Francisco | Consumers and the Economy, Part II: Household Debt and the Weak U.S. Recovery

Federal Reserve Bank San Francisco | Consumers and the Economy, Part II: Household Debt and the Weak U.S. Recovery | Equity Trading, Finance & History | Scoop.it
The U.S. economic recovery has been weak, especially in employment growth. A microeconomic analysis of U.S. counties shows that this weakness is closely related to elevated levels of household debt accumulated during the housing boom.
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A Brief History of Central Banks :: Michael D. Bordo :: Economic Commentary :: 12.01.07 :: Federal Reserve Bank of Cleveland

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Can the Fed Unprint Money?

Can the Fed Unprint Money? | Equity Trading, Finance & History | Scoop.it
Ben Bernanke has pumped vast sums into the economy. What happens when he wants to reel it back in?
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Understanding The Federal Reserve Balance Sheet

Understanding The Federal Reserve Balance Sheet | Equity Trading, Finance & History | Scoop.it
We are all connected to the Fed's balance sheet, and the currency notes that we hold are its liabilities.
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QE: Greg Ip answers my questions

QE: Greg Ip answers my questions | Equity Trading, Finance & History | Scoop.it
Are you still confused about quantitative easing, what it is and how it works?
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Jagmohan Swain's comment, August 16, 2013 5:49 AM
"Here’s how QE works. The Fed buys a $100 bond from Bank of America. The bond gets added to the Fed’s assets. Bank of America has an account at the Fed. The Fed, with a keystroke, puts a $100 into B of A’s account. Where did the money come from? Thin air. Bank of America can visit its friendly neighborhood Fed branch and withdraw that $100 in the form of bills and coins. So for practical purposes the distinction between currency and reserves is meaningless; the monetary base includes both.

Incidentally, it makes no difference whether the bond belonged to Bank of America, or a customer of Bank of America; the mechanics are identical. When the Fed buys the bond from someone who isn’t a bank (e.g. a primary dealer), the transaction is settled through that person’s bank.

The Fed can also unprint money. Suppose its sells the $100 bond back to Bank of America. It then deducts $100 from B of A’s account at the Fed. The money disappears from existence."