Currently, new fiat money is generally created by central banks that gives out that money as loans, or more recently, by central banks simply creating money to buy assets (called quantitative easing).
What would likely the effects be, if a new country decided that their central banks created a fixed amount of money per year, let’s say 4% new money per year, and gave this money directly to the government?
[Question] What if fiat money was created at a fixed rate and given to government?
Currently, new fiat money is generally created by central banks that gives out that money as loans, or more recently, by central banks simply creating money to buy assets (called quantitative easing).
What would likely the effects be, if a new country decided that their central banks created a fixed amount of money per year, let’s say 4% new money per year, and gave this money directly to the government?