Government always spent by notching hazelwood, imprinting clay, stamping coins, chalk on slate, or “running the printing press”. There has never been another alternative. These marks or electronic entries represent government IOUs.
No matter what time period we are talking about, I would have received government payments as “Government Owes Me’s”.
Obviously, government cannot run out of these. Government can “afford” to buy what’s for sale in its own currency.
The question is not about affordability but rather concerns effects on the value of the currency and impacts on the pursuit of private interest.New Economic Perspectives
An Alternative Meme for Money, Part 6: Alternative Framing on Inflation
L. Randall Wray | Professor of Economics, UMKC