The Bureau of Engraving and Printing.
2. How does it get into circulation?
They sell new bills to banks.
3. What is inflation?
A continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services.
Who causes it?
Whoever increases the volume of money and credit relative to available goods and services.
Who benefits?
Debtors and holders of hard assets.
Maybe you can answer mine? Do you think the Federal Reserve creates new money and hands it to the government to spend?
Whoever increases the volume of money and credit
Oh, and who increases the volume of money and (through reserve requirements and fractional reserve banking) credit? Goldman Sachs, the repo market, primary dealers, the tooth fairy, colonel mustard. Me? You?
No they don't run off a bunch of cash and hand it to the federal government. They purchase treasuries.
Why are the bills printed by the bureau of engraving and printing called federal reserve notes. What faction of M1 is in the form of printed federal reserve notes and what fraction is in the form of credits (ones and zeros in demand depository accounts).
Who sells the notes? The bureau of engraving and printing? When they are bought by a bank how are they paid for? When reserves in the system drop as a consequence does anything happen? Does anyone do anything about it? Who does it? What do they do?
Who are "debtors and holders of hard assets?"
Do all debtors benefit from inflation? Do those who have credit card debt benefit from inflation? Do those who have auto loans benefit from inflation?
Does inflation benefit real estate speculators? How?