The government can lend the bond to the central bank.
The central bank borrow the bonds from the government.
↓
Central bank will sell the bonds.
↓
Reduce the amount of new government bond issuance.
Or,Purchase the bonds from the market.
↓
Adjust the yield.
↓
The government receive the profits from the central bank loan.
As a result, the central bank would be losses.
This loss will financed by seigniorage.
Degradation leads to loss of money.
In this case, it is necessary to pay attention to the ratio of deposit liabilities.
In addition, the deposit debt ratio is another indication will be a final cap.
Excluding the above-mentioned details are described in the following here.
Eng:http://lifecycletheory.blogspot.jp/2011/11/policy-of-domestic-currency-s...
Thank you for reading