The Problem with “Modern Monetary Theory” Is That It’s True

Federal Reserve government bond holdings

Federal Reserve

So we see that “printing press finance” has been going on for a long time, and at a relatively large scale. The reason that this works is because the Treasury doesn’t get to decide how many bonds the Federal Reserve buys, or, in crude terms, how much “money is printed.” Since the answer might be “zero”–and in recent months it has actually been negative: the Federal Reserve has been reducing its government bond holdings, in effect “unprinting” the money–the Treasury has to act as if it did not have this advantage.

Source: www.forbes.com