Federal Reserve balance sheet trends
One of the biggest things confusing people about how public finance works is that everyone is focused on the Fed rather than the Treasury.<p>A good aspect of MMT is that it explains how the Treasury spending more than it takes in in taxes means more money is created into the economy than is deleted out of the economy. This is the more important thing to focus on.<p>Some of the MMT professors also do a good job explaining how  QE (quantitative easing) doesn&#x27;t create new net financial assets into the system, it just shifts around assets in accounts at the Fed.<p>All this focus on the Fed seems counterproductive.