>"When inflation is at the target rate of 3% that means that the central bank will default on 3% of the amount of debt it guarantees within a year." Thats pate

>"When inflation is at the target rate of 3% that means that the central bank will default on 3% of the amount of debt it guarantees within a year." Thats patently false. Government debt is sold in the form of bonds. They make up the bed rock of the whole economy. Precisely because they can "print money" they don't default on debt. Government bonds are considered "zero risk" Yes, a central bank can default on foreign debt, or if they can't print their own money (see greek banking problem.) however this underscored the fundemental misunderstanding of how money works. >"By offering short term credit to each other market participants will be able to engage in economic exchange without having to pay the cost of money. >Because market participants will effectively be creating new money with every transaction they will be expanding the money supply and increasing economic growth with every transaction." Thats litrally how the entire banking system works now. Thats how credit cards work too. Thats how B2B credit works. What is not tackled here is risk. Sure free credit is great, but how do you know if someone can settle the debt? In this (unrealistic) world, the credit ratings agency becomes the dominant force. Speaking of which, there is no reason why a small buisness can't offer its own line of credit, without using a bank. However the reason why credit cost money is because there is risk. Interest is a function of risk and supply. Sure a coffee shop _could_ settle bills at the end of the week, but the cost of administering that system is non trivial. The risk of loss is also non trivial. Bitcoin or Etherium does nothing to stop that. In short, this article is flawed.