On: Statement Regarding Repurchase Operations

[nerfhammer]

when the fed writes a check to a bank, the money isn't deducted from an account, it's new money created out of thin air.

when the fed receives a check from a bank, the money doesn't get deposited and stored in some account, the money just stops existing.

[zocoi → nerfhammer]

Any source to back this statement? I’m curious if fed actually destroyed the money after repayment

[nerfhammer → zocoi]

literally any macroeconomics textbook. it's the whole point of the fed.

terms to google: "monetary policy", "open market operations"