It causes inflation. A lot of it causes hyperinflation. With lots of extra caveats and clauses, naturally. You can think of it as a tax on everyone who holds t

It causes inflation. A lot of it causes hyperinflation. With lots of extra caveats and clauses, naturally. You can think of it as a tax on everyone who holds the currency (or other assets directly tied to it, like bonds). If the government prints money, they have it and they can spend it on (for example) salaries. That solves the problem of not being able to pay salaries. No country is exempt, but if a lot of foreigners hold reserves in your currency, they have to share in the cost of inflating it. Al lot or a little is relative to the total stock of money in circulation. Lots of countries hold US Dollars, so the US can print with milder domestic consequences.