[SilverBirch]

So does this just mean it's inflationary? You borrow money, that means more money in the world (inflation) but it's debt, so it'll be paid back, so in the long run you haven't permanently inflated the currency. But then if you don't pay it back that turns into realized inflation and hurts your currency?

[amrocha]

Any spending is inflationary, regardless of how you finance it.

If the spending is financed via taxation it can still cause inflation if it doesn't produce any real resources.

Taxation does create room for non-inflationary spending. That being said, if a government used QE to finance spending that was productive in real resource terms then it would not be inflationary.