The Federal Reserve "prints" bank reserves, that's it. To understand why that matters, you have to understand where bank reserves came from and what they were and are intended for. It isn't at all what you think. But don't take my word for it; that comes straight from the Fed itself. Eurodollar University's Money & Macro AnalysisFRB Atlanta The Evolution of the Check as a Means of Payment: A Historical Survey, November 2008https://www.atlantafed.org/-/media/documents/research/publications/economic-review/2008/vol93no4_quinn_roberds.pdfFRB Banking and Monetary Statistics 1914-41https://fraser.stlouisfed.org/files/docs/publications/bms/1914-1941/BMS14-41_complete.pdfFOMC Transcript July 1981https://www.federalreserve.gov/monetarypolicy/files/FOMC19810707meeting.pdfFOMC Transcript October 1979https://www.federalreserve.gov/monetarypolicy/files/FOMC19791006meeting.pdfFOMC Transcript March 1991https://www.federalreserve.gov/monetarypolicy/files/FOMC19910326meeting.pdfhttps://www.eurodollar.universityTwitter: https://twitter.com/JeffSnider_EDU