The #DistributionOfNewlyPrintedMoney often follows a #cascade that starts close to the source – the central bank or government. Picture this process as a series of interconnected chambers in a financial waterfall.
At the top, the source, let's say a central bank, initiates the flow by injecting freshly printed money into the system. The initial recipients are often large financial institutions, government entities, or entities closely associated with the state. These include banks, government agencies, or financial intermediaries that are strategically positioned to receive the inflow first.
As the currency trickles down, the next tier in this cascading distribution tends to involve corporations and businesses with strong connections to government officials or those in bureaucratic circles. These entities may have privileged access to funding due to relationships or affiliations, positioning them favorably in the money distribution waterfall.
Further downstream, the currency reaches the broader economy. However, by this point, the velocity of the flow may slow, and the impact on the average citizen might not be as direct. The funds may manifest in the form of increased liquidity in financial markets or government spending on projects that benefit specific sectors.
The #CascadeMetaphor illustrates how newly printed money, introduced at the top of the financial ecosystem, gradually permeates through various layers, with those closest to the source often having the first and most immediate access. This process can lead to concerns about unequal distribution and favoritism in the allocation of newly created currency.