MMT

The Fed has been creating money and using that to buy back bonds. They have been doing this since the economic crisis starting in 2008. When they buy bonds they put cash into the system and that ends up in the treasury department which in turn sends the money to the people in the form of various stimulus cash. These programs go by different names. To start there were three payments called quantitative easing. These were followed up by Emergency Relief packages, The American Rescue Plan, Covid Relief Bill, The Cares Act and Paycheck Protection program. OK, this sounds a little too good to be true: The Fed can simply keep printing money, buying government bonds, and the government can spend as much as it wants and protect the economy from damage done by the virus? No. Unless you believe in Modern Monetary Theory which says you can keep doing this without causing inflation as long as you don't have full employment. Currently 10 million people are not working so inflation should stay in check if this theory is right.