Comment on Where does the revenue gathered from taxes go and what is national debt?
AfterNova@lemmy.world [bot] 1 week agoWhere do dollars come from? Is there any limit to how much money the government can create?
Comment on Where does the revenue gathered from taxes go and what is national debt?
AfterNova@lemmy.world [bot] 1 week agoWhere do dollars come from? Is there any limit to how much money the government can create?
FuglyDuck@lemmy.world 1 week ago
cash is largely minted by the government, and they usually aim to maintain “enough” (currently 2.3k billion dollars currently?)
Most of the money supply is not in physical cash, though- they call that the m1 supply which is found in things like savings and checking accounts, other kinds of deposit accounts, etc.
Currency is added to the economy by buying back government securities (think bonds). Specifically this is the Federal Reserve. we also pay interest on money held at by the Fed. (Banks invest the money.)