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There are, in fact, "X" amount of dollars available.
Just because we have trouble measuring precisely how many dollars are in circulation does not mean the amount is infinite.
An economy is not measured solely by the number of currency units within it. That is the M1-M2 money supply, not the entire economy. Also, the M1-M2 can and does change, daily. Please google "quantitative easing" to see how money supplies can arbitrarily increase.
We can blame Congress for setting the monetary and finance policy that allows banks to cause inflation.
Congress doesn't set the monetary and financial policy of the United States. The Federal Reserve Bank system does that. They are independent of Congress.
The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. ch. 3) is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America
^Here is the specific method of operation that congress authorized for the Federal Reserve Bank. It is illegal for the Fed to act outside these Congressionally-defined boundaries. Thus the Fed is not autonomous, it is a creation of Congress, and it is Congress that is responsible for its mandate.
The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. ch. 3) is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America
^Here is the specific method of operation that congress authorized for the Federal Reserve Bank. It is illegal for the Fed to act outside these Congressionally-defined boundaries.
They set it up. Doesn't mean they control it, which Congress doesn't.
If you read the link .. which I've posted a second time .. you'll see how specific the law was written.
The Fed does not have autonomy when it comes to monetary policy. They operate within the bounds that Congress has set up. Congress is to blame for limiting the toolkit of the central bank.
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