1. In some countries, the treasury can print money to pay for government expenditures. In other countries, the treasury can achieve the same effect by borrowing directly from the central bank. In the United States, the Treasury is prohibited from selling bonds directly to the Federal Reserve. However, the Federal Reserve can and does buy Treasury securities on the open market. Except where noted, the resulting revenue from money creation is included in current taxes
2. These effects follow even if the economy is not isolated from the rest of the world, so long as it is large enough to affect world interest rates