Currently, new fiat money is generally created by central banks that gives out that money as loans, or more recently, by central banks simply creating money to buy assets (called quantitative easing).
What would likely the effects be, if a new country decided that their central banks created a fixed amount of money per year, let's say 4% new money per year, and gave this money directly to the government?
Arguments for:
Arguments against
Unsure if for or against
Generally poor people have more of their money in cash, and wealthier have more loans on their investment (ex mortages) and are therefore net negative on cash. Arguably, this redistribution can increase growth, since high leverage businesses and people getting loans for houses, invests their money.
This is a complicated topic. https://www.amazon.com/Secrets-Temple-Federal-Reserve-Country/dp/0671675567 provides a good overview of the origins and purpose of the Federal Reserve system.