3 ms·
If I lend 20 bucks to my friend, then he lends it to his friend, who lends it to his friend, that's the same kind of multiplier. The total outstanding loans is
by xenophanes 16y ago
If I lend 20 bucks to my friend, then he lends it to his friend, who lends it to his friend, that's the same kind of multiplier. The total outstanding loans is $60. I really don't get what people make a big deal out of this. I guess it's b/c they aren't economists.
- edmccaffrey 16y agoExcept that's not the same kind of multiplier at all. I don't understand why you would make a comment without doing any research. I guess you're not an economist.
- xenophanes 16y agoThe total loans in existence is a multiple of the starting money. Same thing. And also the same is refusing to subtract the total debt for some reason. Unless you have some kind of, you know, argument?
- patrickgzill 16y agoIt would only be the same if you then were convinced you had assets in the form of outstanding loans, of $60. As a bank would do such accounting.