What is 'debt monetisation' in Economics?

A term that refers to the purchase of government bonds by the central bank to finance the spending needs of the government. Since the central bank creates fresh money to purchase these bonds in the open market, debt monetisation leads to an increase in total money supply. This, in turn, can lead to higher prices in the economy, which the central bank can counter by selling the bonds that it owns out in the open market. Such bond sales help in sucking excess money out of the economy, thus helping in the control of rising prices.