What did the US do before the Fed? How about bank notes issued by the Treasury. Spending money into existence is no more inflationary than what we have now and it eliminates debt.
Mostly suffered from depressions every 20 years.
Spending money into existence is no more inflationary than what we have now and it eliminates debt.
When the Fed's bond holdings mature, they can shrink the money supply by not rolling them over. They could also sell their bonds to fight inflation. How would the Treasury do that if they issued money?