Final answer:
The government revenue raised by printing money is known as seigniorage, which can lead to hyperinflation. Historical examples include the American Civil War and post-World War I Germany. Excessive printing of money is fraught with economic risks, including inflation and loss of confidence in currency.
Step-by-step explanation:
The revenue that the government raises by printing money is generally referred to as seigniorage. This occurs when a government prints money to finance spending that can’t be covered by tax revenue or borrowing. One classic historical example is during the American Civil War, when both the Union and the Confederacy resorted to printing money, with the Confederacy funding over 60% of their war effort through the printing press. Such actions can often lead to hyperinflation, as the increase in the money supply can cause prices to rise drastically if there aren't proportionate amounts of goods and services in the economy. This can lead to an economic crisis and a collapse of public confidence in the currency and the government, as seen in Germany after World War I and more recently in Zimbabwe.