How are newly-printed U.S. dollars inserted into the economy? Obviously they don’t just hand stacks of bills out to people, so what do they do to begin circulating it?
In: Economics
They give it to banks. Banks then disseminate it out to people when they request withdrawls, exchanges, etc, as part of their normal business function.
The government also seizes (old) money from banks when they do this, to ensure that the balance of inflation vs economic stimulation is maintained, or at least managed.
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