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Printing money is the problem there, not interest. If you banned interest/loaning, you could still end up having inflation because government would print money
by zo1 6y ago
Printing money is the problem there, not interest. If you banned interest/loaning, you could still end up having inflation because government would print money (or do other things such as https://en.wikipedia.org/wiki/Coin#Debasement_and_clipping https://en.wikipedia.org/wiki/Coin#Debasement_and_clipping ).
- gher-shyu3i 6y agoIt's a combination of interest as well as printing money. Interest keeps the deficit growing, forcing the government to print money. If we switch to a non-inflationary currency not at the control of a single entity, these wouldn't happen.