Graeme: Caller breaks down the Reserve Bank Covid inquiry, what money does, and the impact on the economy

The Government's announced an independent review of the fiscal response to the Covid pandemic.

Finance Minister Nicola Willis says it will look at any lessons the country could learn to improve its monetary policy response to future events.

It will probe decisions by the Reserve Bank's Monetary Policy Committee and advice it received – including the decision to print $55 billion in digital money during the pandemic.

Graeme, a caller on Kerre Woodham Mornings, decided to break down exactly how the concept of “printing money” works, what impact it has on the market, and the impact it had during Covid.

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