ower (Kandil, 2002).
Thus, the Federal Reserve is confronted with the problem of providing
additional capital. The Federal Reserve could just print more money (a
euphemism for various policies that increase the supply of money in the
economy beyond the point where the strength of the economy can support the
additional money). Most everyone recognizes that printing money is a bad
idea that, over some period of time, will lead to stunning inflation
followed by an even more stunning economic crash. The answer for the
Federal Reserve, thus, is to attract more money into the United States from
other countries. The increase in foreign money in the American economy
will ease the pressure on the American capital markets (Rhee, 2003). Then,
the federal government can fund its budget deficit, American businesses can
obtain investment funds, American consumers can buy houses and cars, and no
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