When the Fed increases the money supply, does any of the additional supply go directly to the government? When a central bank increases the money supply, how much of it goes directly into the government purse? Say for example:


The money supply is $150
The populace has $100
The government has $50.


If the Fed decided to increase the money supply to \$200, does any of the extra $50 go into directly into the government purse? Does it vary?
The answer to this question is maybe (but most likely not).

The most common method central banks use to increase money supply (assuming they control their own monetary policy) is through open market operations. Open market operations is when the central bank purchases or sells treasuries in the secondary market (typically). The answer to your question depends on where the central bank buys the treasuries.

If the central bank uses an open market purchase of treasuries in the secondary market, then the money goes to the entities which sold them the treasuries, so none of the money would go directly to the government. However, hypothetically in some countries where corruption is prominent, there may be a situation where the government forces the central bank to purchase treasuries in the primary market (directly from the government). In this situation, all of the money that is being pumped into the economy would go directly to the government.