That’s actually complex issue. Trivial model would probably suggest it will cause inflation proportional to the amount of created money. But market behavior is complex and you could get away without inflation if checks were small enough.
The bigger issue would be government creating money directly circumventing Central Bank - that perverts political incentives and is potentially a downhill towards catastrophic collapse
That’s actually complex issue. Trivial model would probably suggest it will cause inflation proportional to the amount of created money. But market behavior is complex and you could get away without inflation if checks were small enough.
The bigger issue would be government creating money directly circumventing Central Bank - that perverts political incentives and is potentially a downhill towards catastrophic collapse