The issuance of high-strength money by the central bank is based on a series of interviews, the first of which is net foreign assets and then net domestic assets. One of the most important components of net domestic assets is loans to finance the state budget deficit. Cash and loans to the government.
Musoni Rutayisire
Yes what you say is true. You can indeed check the balance sheet of any central bank and see that the change in the broad money ( total money in the economy ) is equal to the change in the foreign and domestic assets of the central bank. One of the item of the central bank's assets is the "net credit to government". So the Government is responsible for a percentage of money injected in the economy.
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