TED-Ed: How do governments create money out of thin air? | Jonathan Smith

The video discusses the global economic impact of crises, highlighting job losses and business struggles. Governments responded with large relief packages, funded through central banks. Central banks manage money supply and can't print unlimited money due to inflation risks. Quantitative easing, a method used by central banks, involves buying bonds to increase cash flow without severe inflation. The Federal Reserve's bond purchases during crises helped fund relief efforts. However, concerns about long-term effects and potential system subversion remain. Quantitative easing is still evolving, with its full impact yet to be seen.

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