How do governments create money out of thin air? - Jonathan Smith
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Most governments have since required large sums of money to engage in a relatively new technique called Quantitative Easing. Since 2009, central banks have bought more and more of their governments debt and have done so by increasing the money supply. There are mixed reviews on the long-term effects quantitative easing will have on the global economy. Some think that we have entered a new era of government intervention and economic policy known as Modern Monetary Theory whilst others think that there could be long-lasting damaging effects of this approach.
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