The term also applies to monetary seignorage, where sovereign-issued securities debt monetization, including expanding the money supply during GDP growth and meeting yearly inflation targets.
2.
In a fiat currency system, because government debt is practically speaking money already, debt monetization or quantitative easing are never seriously inflationary and are very probably deflationary in current conditions.
3.
Richard W . Fisher, president of the Federal Reserve Bank of Dallas, warned in 2010 that QE carries " the risk of being perceived as embarking on the slippery slope of debt monetization.
4.
We know that once a central bank is perceived as targeting government debt yields at a time of persistent budget deficits, concern about debt monetization quickly arises . " Later in the same speech, he stated that the Fed is monetizing the government debt : " The math of this new exercise is readily transparent : The Federal Reserve will buy $ 110 billion a month in Treasuries, an amount that, annualized, represents the projected deficit of the federal government for next year.
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