The Federal Reserve "prints" bank reserves, that's it. To understand why that matters, you have to understand where bank reserves came from and what they were and are intended for. It isn't at all what you think. But don't take my word for it; that comes straight from the Fed itself.

Eurodollar University's Money & Macro Analysis

FRB Atlanta The Evolution of the Check as a Means of Payment: A Historical Survey, November 2008
https://www.atlantafed.org/-/media/do...

FRB Banking and Monetary Statistics 1914-41
https://fraser.stlouisfed.org/files/d...

FOMC Transcript July 1981
https://www.federalreserve.gov/moneta...

FOMC Transcript October 1979
https://www.federalreserve.gov/moneta...

FOMC Transcript March 1991
https://www.federalreserve.gov/moneta...

https://www.eurodollar.university
Twitter:   / jeffsnider_edu