Question

Keynesian view on printing money for fiscal deficit

Answer 1

The government can mobilize resources for economic growth by financing its budget deficit through printing high powered money.

This is therefore called money financing of budget deficit. It is important to note that in the old or earlier terminology printing of new money to finance the budget deficit was called deficit financing. It is now called money financing of budget deficit for mobilizing resources by the government. The printing of money to raise revenue by the government is also called seignior-age.