Monetization of debt term that refers to the purchase of government bonds by the central bank to finance the spending needs of the government. Since the central bank creates fresh money to purchase these bonds in the open market, debt monetisation leads to an increase in total money supply.
80%
Monetization of debt term that refers to the purchase of government bonds by the central bank to finance the spending needs of the government. Since the central bank creates fresh money to purchase these bonds in the open market, debt monetisation leads to an increase in total money supply.