First, the real bills doctrine affected
Federal Reserve note issuance but placed no limits on the expansion of the money stock through member bank reserves.
For 2000, the securities counterpart to
Federal Reserve notes earned $32.7 billion in interest income.
TABLE 1 FED'S BALANCE SHEET (BILLIONS OF DOLLARS) May 11, 2016 Assets Liabilities Securities Held Outright 4,234
Federal Reserve Notes 1,407 Other 244 Reserve Balances 2,410 Other 621 Total Assets 4,478 Total Liabilities 4,438 May 10, 2016 Assets Liabilities Securities Held Outright 760
Federal Reserve Notes 758 Other 82 Reserve Balances 14 Other 41 Total Assets 842 Total Liabilities 813 Source: Federal Reserve Statistical Release H.4.1, May 12, 2016, May 11, 2006, selected items.
In the early twentieth century,
Federal Reserve notes were still redeemable for gold and gold coins still circulated in the US economy.
government redesigns
Federal Reserve notes to stay ahead of counterfeiters.
The liabilities consist mainly of
Federal Reserve notes in circulation (paper currency) and reserve accounts of banks located in the Reserve District.
Volume 2 of Allan Meltzer's monetarist History of the
Federal Reserve notes Bretton Woods "might have continued if price adjustment had occurred promptly in response to domestic policy choices, differences in productivity growth, changes in the extent of capital mobility, and the like." President Nixon had either to devalue the dollar versus other currencies or to deflate.
paper currency (e.g., silver certificates, Treasury notes,
Federal Reserve notes).
The Fed is authorized to control monetary policy and issue
Federal Reserve notes, now known as the U.S.
Bank notes were not a concern in Depression-era banking legislation because
Federal Reserve notes had largely replaced them as payment instruments.
The
Federal Reserve notes that "vacancy rates on office, industrial, and retail properties have remained at elevated levels at the end of 2010, ranging between 13% and more than 16%, depending upon the property type and location.
When the
Federal Reserve notes that thousands of letters have come into them, all basically the same, it dilutes their meaningfulness.
