> How can you convince a bank[1] to give you money, if the bank's money is already producing a healthy return just sitting in the bank's vault? Why do people i

> How can you convince a bank[1] to give you money, if the bank's money is already producing a healthy return just sitting in the bank's vault? Why do people invest in stocks when they can play it safe in a bond market? They have a different appetite for risk. I do see your point, a constantly inflating money supply encourages people to invest. The flip side to that is, are the investments worth it? Inflation is an artificial incentive to invest, which some believe is the cause of bubbles. Remember all those stupid investments in the dot-com bubble? Some believe it's because money was too cheap.