Devaluation by opportunistically erasing treasury debt from fed sheet. Seigniorage, treated as a tax is replaced by a monetary inflation expense. The result is the fed operates in a price varying environment with volatile interest charges, it need react faster, targeting loans to deposits. Absent the fed specific seigniorage tax, member banks enticed to to a bit of marginal borrowing. Time insurance moving to a separate pit.
But guv got one humongous disaster looming, they have inflation indexed everything. None of their programs computable with price fixing as the fed moves toward asynchronous interest charges.
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