The money flow

in blurt •  4 months ago 

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Visualizing the continuous circulation of funds from account to account using the flow of money and hedging, we can demonstrate how cash accumulates persistently even amidst the two worlds of quantitative easing and tightening. For instance, in quantitative easing, central banks increase the money supply by issuing cash and injecting it into the market. During this process, cash circulates between accounts through various channels such as banks or investment institutions. Conversely, in tightening, central banks withdraw cash to reduce the circulating money supply. However, cash continues to accumulate and circulate among different accounts through hedging and other financial instruments, regardless of the situation of quantitative easing or tightening. This flow visually represents the liquidity and circulation of cash irrespective of the circumstances of quantitative easing and tightening.

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