An Experiment in Scotch

Dur­ing the cur­rent eco­nomic cri­sis, the Fed­eral Reserve has increased its bal­ance sheet sig­nif­i­cantly in order to increase the mon­e­tary liq­uid­ity in the econ­omy. Many peo­ple assume they have done this by “print­ing money” which in the­ory increases the money sup­ply held by the pub­lic and over the long term is infla­tion­ary. How­ever, because the …