Long term increase in the monetary base?
Has does the monetary base increase long term? When the fed expands the money supply it does so by buying treasuries. When the treasuries mature, the government has to pay back the principal. This should drain the money supply. Now as long as the debt keeps expanding, I get how MB can stay expanded, but there have been decades where the MB expanded while debt decreased. How can this be so? Keep in mind I am talking about monetary base, not including bank credit