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4
votes
2answers
144 views

Swiss-style Monetary Policy

I'm doing some research on investing and financial advisers. Not that I have a lot (no debt, less than 20K in net worth), but I've recently finished paying off all my student loans, and am now ...
8
votes
4answers
648 views

How can all these countries owe so much money? Why & where did they borrow it from?

When I look at this long list of countries with debt, I get the feeling we've all been sold a load of manure. How can so many countries owe so much money? Generally speaking, why did they borrow it, ...
3
votes
1answer
80 views

Why is seigniorage different for paper notes and coins?

Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the ...
10
votes
5answers
2k views

If a country can just print money, is global debt between countries real?

I was having a conversation with my brother last night and we were trying to figure out how exactly countries go into debt to each other. Say the US borrows money from China. What does this mean? Do ...
3
votes
4answers
1k views

How much control over the Federal Reserve does the U.S. Government have?

Or, in other words: Who does the head of Fed report to? Is the Federal Reserve a private institution? I'm going to be a bit naive here, have just read about how the Fed has been brought to life and ...
5
votes
2answers
317 views

What does the Fed do with the extra money it is printing?

Last month I read some news about the Fed printing money to devalue the U.S. Dollar compared to other currencies. But what do they do with this extra money?
11
votes
2answers
974 views

The U.S. National Debt: What is it, where did it come from, and how does it work?

I am not from USA. I read few articles about the US National debt but still can't get the sense of it. Could you explain it in simple words? I know that it is huge. I can't understand following ...
24
votes
7answers
6k views

Where do countries / national governments borrow money from?

It seems that every country on Earth is in debt, but nowhere on the news do they ever mention to who. If countries are all in debt to each other then why not just cancel all the countries debt. If ...
5
votes
2answers
248 views

Do banks keep their reserves at the Fed in cash or can they be kept in US Treasuries?

This chart at the St. Louis Fed has a lot of people worried about future inflation, because it represents idle money that, when lent out, could eventually flood the world with 10 - 12 trillion new ...
26
votes
10answers
5k views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
6
votes
1answer
952 views

How does the concept of negative interest rates work? Are there any examples of this?

This term has been proposed in economics, what exactly is it? I thought interest rates never fall below zero. How would this work? Wouldn't it actually be a penalty to depositor/investor or a bonus ...