What exactly is printing money?
When people say the Federal Reserve “prints money,” they mean it’s adding credit to its member banks’ deposits. The Federal Open Market Committee (FOMC) is the Fed’s operational arm, guiding monetary policy. It engages in expansive monetary policy when the Fed expands credit.
How is real money made?
Why can’t we just print more money?
The Fed tries to influence the supply of money in the economy to promote noninflationary growth. Unless there is an increase in economic activity commensurate with the amount of money that is created, printing money to pay off the debt would make inflation worse.