Then you would have excess money supply, and if demand for the currency stays the same, it will devalue the currency, which causes inflation. That might be OK, as long as its below your economic growth rate.

With the US, the treasury uses the fact that the US dollar is one of the reserve currencies (the euro is catching up), and the US government demands payment for their security services to Japan/Korea/etc in USD, etc,etc helping maintain the demand for the USD.

>With the US, the treasury uses the fact that the US dollar is one of the reserve currencies (the euro is catching up)

No, it is not.

https://en.wikipedia.org/wiki/Reserve_currency#/media/File:G...

Yeh the euro isn't catching up anytime soon. They don't have a strong central government or a single equity market. Until they fix that they are boned

Well I all the economy is represented by a dollar and I have the dollar I own everything. If the gov prints another dollar I've now become 50% poorer. The government essentially has taken my money. Same thing happens here. If the government prints 200 million anyone with RMB in saving will get substantially poorer and good all get more expensive.

That's not a precedent to set lightly.

Government money creation should be used for actually productive purposes. While avoiding costs represents some kind of return, it's not clear that's the best plan.