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The money supply has to expand because our economy expands. If an economy keeps producing more things more efficiently, you need your money supply to also expan
by cortesoft 5y ago
The money supply has to expand because our economy expands. If an economy keeps producing more things more efficiently, you need your money supply to also expand, or you will have deflation and the economy will grind to a halt.
- cheeseomlit 5y agoIf you produce things more efficiently they should cost less, the money supply shouldn't expand to make sure their cost stays the same or more. Nobody can be entrusted with the authority to "expand the money supply" and not abuse it to the point of collapse. Case in point: https://fred.stlouisfed.org/series/M1 https://fred.stlouisfed.org/series/M1