Monetisation refers to the conversion of an object into money, which means that it is generally accepted as a medium of exchange. Metals are monetised as coins once they are standardised in weight and accepted as money.
Government debt can also be monetised, which occurs when a government replaces its interest-bearing debt with money.
ExampleHere is how the process of debt monetisation works.
When a government spends in excess of its tax revenue it must borrow from the public. The public purchases...