With fiat currencies a healthy dose of inflation is encouraged by governments so they can
increase the total money supply.
The effect of quantitative easing is to raise the price of securities, therefore lowering their yields, as well as to
increase total money supply.
Not exact matches
The amount of newly
increased money supply peaked in 2012,
totaling over 26 trillion yuan (US$ 4.1 trillion), with China accounting for nearly half of it.»
The
total increase in
money supply will of course be $ 100 billion ($ 10 billion in demand deposits to the dealer, $ 90 billion to the treasury, from whence it is distributed back into the economy at large).