Over the past decade and a half, the world economy has confronted two major crises—the global financial crisis (GFC) and the COVID-19 pandemic. In both, central banks responded by cutting interest rates and deploying unconventional monetary policy tools in several countries. These measures certainly helped to support economic activity and maintain financial stability. Yet various countries were pushed in a liquidity trap with interest rates close to zero while public debt rose to historic highs. Against this background, a debate ensued about whether central banks should take even more unorthodox measures, including reconsidering the well-established opposition to monetary finance (MF)—that is, the financing of the government via a permanent increase in the monetary base. This paper reviews the theoretical arguments in favor and against MF and presents an empirical assessment of the risks that it may pose for inflation.