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I don't believe this would cause any additional inflation, since this is not scenario of creating money, but rather converting one class of money(bank deposit)
by liaukovv 5y ago
I don't believe this would cause any additional inflation, since this is not scenario of creating money, but rather converting one class of money(bank deposit) into another class(reserve notes).
- LudwigNagasena 5y agoThe people may even simply move money from one bank to another, it doesn’t matter. What matters is that the bank goes insolvent. So what you have now is a bunch of loans not supported by anything.