DavidYoung
Rookie
- Jun 10, 2012
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This is an economics 101 question, as I have very little familiarity with the subject.
I understand how increasing the number of banknotes in circulation affects inflation, but I don't understand how the extra notes get into circulation in the first place.
When a government decides to run off, say, ten percent more dollar bills than usual, where do they physically go? How exactly does the newly created money 'enter circulation'?
I understand how increasing the number of banknotes in circulation affects inflation, but I don't understand how the extra notes get into circulation in the first place.
When a government decides to run off, say, ten percent more dollar bills than usual, where do they physically go? How exactly does the newly created money 'enter circulation'?