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Wouldn’t the effect of hoarding wealth be anti inflationary? If it’s not being spent then it might as well not exist in which case it’s as if all of the money w
by mentos 5y ago
Wouldn’t the effect of hoarding wealth be anti inflationary? If it’s not being spent then it might as well not exist in which case it’s as if all of the money was confiscated and deleted by the government anyways?
- Sevii 5y agoIt isn't being hoarded, it is being lent out.
- lurquer 5y agoLiterally hoarding... as in under your mattress? Yes. Instead, your ‘hoarders’ are loaning their money to a bank which then in turns loans many multiples of that money to borrowers.
- imtringued 5y agoHoarding Bitcoin is deflationary. "Hoarding" USD in a bank account can be deflationary if there is not enough demand for loans or if the borrowed money never reaches the real economy.
- pydry 5y ago>Wouldn’t the effect of hoarding wealth be anti inflationary? Only if it's being hoarded as cash - something almost nobody does. If it's being hoarded in the form of assets, you'll see rampant asset inflation instead.