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Expand supply of money with money that didn't previously exist. Recipients gain access to the new money mostly from borrowing, and pay back the money with previ
by rolltiide 7y ago
Expand supply of money with money that didn't previously exist. Recipients gain access to the new money mostly from borrowing, and pay back the money with previously existing money. When recipients fail to reach previously existing money due to limitations of the size of the market, new debt is no longer available, and the recipient's remaining resources are taken instead.
Expand, contract. I think it is a great way for the state-sanctioned stewards of the economy to understanding the size of the market and the current limits of global resource distribution by having so much data.
I wish there were entertaining videos on this concept that weren't also trying to "wake people up" to something "bad". Where is the "here is the effect of the business cycle", "here are the tools to play this game more effectively".