The Free Market Center
The Free Market Center
"Control" connotes precision that does not exist in the processes used by the Fed. Banks, on the other hand, cannot act totally independent of the Fed or their customers.
The parties involved in the creation of bank reserves can only exercise influence. But who has the greater influence?
Now that you understand the processes, you can make your own decisions about who has the greater influence over reserves, ergo the growth of the money supply.
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