The policy of domestic currency supply to the government will result in tremendous economic effect.
Economic effects of the policy of domestic currency supply to the government
The following lists the merits and demeris.
Merit
Currency depreciation.
Free tax or tax cuts can be.
Redemption of bonds easier cause yield decreases.
Become accurately reflect the sentiment of money. Therefore, eliminating tariffs.
Demerit
The negative interest rate equivalent dilute local currency assets.
New currency migrating risk.
At least this can get much greater economic benefit compare to a loss due to catastrophic hyperinflation and default.
Indicators and the procedure is as follows.
http://lifecycletheory.blogspot.com/2011/11/policy-of-domestic-currency-...